Big Plans

Calcutta, April 22: CESC has floated a wholly-owned subsidiary called Crescent Power Company to set up a 40-MW power plant in Asansol at an investment of Rs 160 crore.

The plant will be based on coal washery rejects.

After Balagarh Power, Crescent is the second company from the RP Goenka stable.

Managing director Sumantra Banerjee said: ?The company has just been formed. A chief executive officer will be appointed once the company starts functioning.?

The group is waiting for certain approvals from the state government, which also includes a no-objection certificate from the West Bengal Pollution Control Board for the new project.

On whether Crescent will be the vehicle of the company?s investments in a thermal power plant outside Bengal, Banerjee said, ?Not really. We may have to float a separate company depending upon the investment pattern.?

The RPG group is keeping a watch on the unbundling of the state electricity boards. ?Unbundling of SEBs will lead to privatisation of some. If it suits us we can participate in the privatisation move. And for that we are open for a joint venture as well. However, we are waiting for the survey reports of the four states ? Maharashtra, Rajasthan, Karnataka and Haryana. We hope to complete the exercise within the next two to three months.?

However, CESC has no immediate plans to enter the distribution business in a big way.

The company did not go for the distribution business the Uttar Pradesh government had invited bids for.

?Unless we are sure of generating good revenues from the distribution business we will not enter,? he added.

?We have turned around our company. Till the third quarter of 2004-05, profit was Rs 121 crore. The fourth quarter numbers are yet to come. We will not do something that may affect our profitability,? Banerjee added.