CESC, a Kolkata-based RP-Sanjiv Goenka Group company, has received its sixth distribution license area outside of Kolkata in Chandigarh, expanding the power utility’s distribution footprint and giving it an additional revenue stream .
CESC’s wholly-owned subsidiary, Eminent Electricity Distribution, became the highest bidder after acquiring a 100% stake in the Chandigarh electricity distribution company.
The company would obtain a distribution license for 25 years, but the formalities required to obtain the license were currently in progress. “Once operational, this will significantly strengthen the company’s distribution footprint,” CESC said in its FY22 annual report.
The license area spread over 114 km² with around 2.3 lakh consumers is estimated to have around 1,600 MW of annual electricity sales. Chandigarh, a union territory, has one of the highest per capita incomes in the country, allowing CESC to further strengthen its revenue stream.
Apart from Kolkata, CESC has distribution businesses in Greater Noida, Kota, Bharatpur, Bikaner and Malaygaon serving 72 lakh consumers. Its power sales in FY22 in five distribution areas increased 13.5% year-on-year compared to FY21, representing 4,965 million power distribution units.
In Kolkata and adjacent areas of Howrah, Hooghly, North and South 24 Paraganas, where CESC serves 35 million customers, 15 lakh new meters have been installed and 97,000 new connections given. The average time it took to deliver a new connection was between one and two days, according to the report.
In order to improve public safety, especially around roadside pillar boxes, the company introduced IOT-based water level indicators to get automatic information and trigger messages to the control room in order to take preventive measures when the water level is in the waterlogged areas. rises to an alarming level.
However, expressing concern over rising input costs, RP-Sanjiv Goenka Group Chairman Sanjiv Goenka said power companies had witnessed the reluctance of state governments and regulators to raise tariffs. on time. “This negatively affects the financial sectors of power producers,” he added.