Kolkata power utility to enter real estate business

CESC Ltd. is embarking upon property development and also evaluating its existing set of investments on land, company chairman Sanjiv Goenka said Wednesday.

CESC is part of the Kolkata-based conglomerate R.P.-Sanjiv Goenka Group.

"We have assets which are not revenue generating and want to convert them into revenue generating ones," Goenka said on the sidelines of the announcement of commissioning the group's Haldia power plant.

According to Goenka, the group has properties spread across India that it was not utilising for revenue-generation purposes.

In this regard, the company has formed CESC Properties Ltd., a wholly-owned subsidiary which is developing a commercial-cum-residential property in Haldia.

"There will be 330 high- to medium-end flats an a total area of 1.2 lakh square feet for commercial purposes," he said.

The company had acquired three acres of land during a state government auction and would be spending about Rs.150 crore for the project development.

"Of the 330 flats, CESC will reserve 100 for staff accommodation and other needs and 140 flats will be available for sale in the residential category. Also, we are in talks with a private company over the remaining 90 flats," he added.