CESC likely to announce business restructuring scheme in May

The Rs 32,000-crore RP-Sanjiv Goenka group may announce the "business restructuring scheme" of its flagship power company CESC in May, a company source said on Monday.

The restructuring scheme is "ready" and the company will likely create separate entities for the two verticals-generation and distribution.

"CESC is keen to time the recast announcement along with the financial results in the third week of May," the company source said.

According to the source, the city-based power utility, going forward, will focus significantly more on distribution operations.

"The company will turn into a generation-light company as it feels it is now the

right business model for growth," the source said.

In February, group Chairman Sanjiv Goenka said various aspects regarding the restructuring exercise were being evaluated and the consultant was reviewing this whole unbundling exercise.

"Hopefully, they will present it before the board shortly," Goenka had said.

The power utility has been aggressively bidding for distribution projects. In February, it had won a distribution project for Bikaner in Rajasthan while last June, the company had also secured power supply contracts for Kota and Bharatpur in the state.

--IANS

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