Power utility CESC Ltd has posted a net profit of ₹195 crore in the second quarter to September 30, 2015, against a net profit of ₹192 crore in the corresponding quarter last year.
Its quarterly revenue from operations was ₹1,757 crore (₹1,661 crore).
During the quarter, the West Bengal Electricity Regulatory Commission did not allow CESC any upward revision for the year. WBERC also did not consider its claim for recovery of additional levy of ₹998 crore paid to the Centre for extracting coal from its mine in West Bengal till March 31, 2015.
This additional levy of ₹295 a tonne arose out of a Supreme Court ruling for past extraction in the captive coal block, allotment of which was cancelled by the apex court. A group outfit — Integrated Coal Mining Ltd – did the extraction. However, the coal used to be transferred to CESC at Coal India prices, which was higher than the cost of production at the captive mine.
CESC is now treating this ₹998 crore additional levy amount as recoverable fuel cost.
Interestingly, at a press conference, Sanjiv Goenka, Chairman, CESC, said: “No additional tariff would be charged on the customers because of this”.
Meanwhile, Goenka said that the CESC has taken up a capital expenditure plan of ₹800 crore for 2015-16 for improving distribution network, including lines and sub-stations in the command area of Kolkata and its surroundings.
The CESC stock on Friday closed at ₹558.15 on the BSE, up 5.57 per cent.