CESC Ltd today reported over 137 per cent rise in net profit to Rs 266 crore in the January-March quarter when compared with the same period previous year.
The higher profit came on the back of higher tariff awarded by the regulator during the last quarter. Profit after tax for 2011-12 increased by close to 16 per cent to Rs 565 crore.
In March, the West Bengal State Electricity Regulatory Commission (WBSERC) allowed the RP-Sanjiv Goenka Group flagship, to enhance electricity tariff in Kolkata by 69 paise unit (over 13 per cent) to Rs 5.88 a unit for 2011-12. The arrears estimated to be Rs 550 crore (on an annualised basis) will be collected over next two years.
Announcing the results the CESC Vice-Chairman, Mr Sanjiv Goenka, on Tuesday said that the board of directors decided to set up a 3 X 660 MW supercritical thermal power plant at Balagarh in West Bengal, subject to fuel availability. The State Government has reportedly taken the responsibility of ensuring availability of coal to the proposed Rs 10,000 crore project.
“The State Government is proactively pursuing with the Union Government for coal,” Mr Goenka said.
According to him, the company has nearly 1,000 acres of “free hold” land in possession at Balagarh in Burdwan district.
In early 1990s, a CESC subsidiary was granted “fast track approval” to set up a thermal power station at Balagarh which could not be implemented. Sources told Business Line that ensuring fuel supply to the project is easier said than done. While ensuring supply (linkage) through Coal India appears elusive at this juncture, the West Bengal Government recommended the Centre for allotment of captive coal block to the CESC project through the State dispensation route.
However, considering the long list of States pitching to exercise the option, it may not be easy for the Coal Ministry to yield to the demand of West Bengal.
Considering a mere 1.7 per cent annual growth in consumption of electricity in CESC licensee area coupled with expected commissioning of 600 MW greenfield capacity at Haldia in mid-2014; Balagarh project has little bearing on power availability scenario of Kolkata in the next couple of years.