Goenka in Calcutta on Wednesday. A Telegraph picture

Calcutta, July 30: Faced with mounting losses, Spencer’s Retail Ltd, the retail arm of RPG Enterprises, may close 40 shops across the country.

Sanjiv Goenka, vice-chairman of RPG Enterprises, said these shops were suffering losses because of lower revenue, high rentals and bad hinterland.

At present, Spencer’s has about 410 stores, retailing primarily food items. It plans to open 300 more in the next 12 months.

Goenka was speaking at the CESC’s 30th annual general meeting here today.

CESC, the power utility, holds a 94.72 per cent stake in Spencer’s Retail. Spencer’s reported a loss of Rs 89.3 crore in 2007-08 on sales of Rs 768.11 crore.

Power moves

Goenka said CESC had made considerable progress in its power projects in Bengal and Jharkhand.

For the 1,800MW facility in Haldia, the company has acquired 241 acres of the 334 acres required for the first phase.

He said financial closure would be achieved by September for the first phase of investment of Rs 2,500 crore. The 600MW unit will go on stream by 2011-12.

In the first quarter of 2008-09, CESC’s total income stood at Rs 842 crore against Rs 750 crore in the corresponding period of 2007-08.

The company’s net profit for the June quarter was Rs 94 crore against Rs 82 crore in the corresponding period of 2007-08.

This included Rs 11 crore by selling carbon credits.