RP Sanjiv Goenka Group flagship CESC Ltd is expecting acquisition opportunities in the power sector to get cheaper over the next 12 months.
“Opportunities will come cheaper in a year or so. This is our articulated calculation for it,” the group’s Chairman Sanjiv Goenka said recently on the sidelines of the company’s annual general meeting (AGM).
He was responding to questions on acquisition of stressed assets in the power sector.
“A dedicated team is working towards identifying stressed assets and we have well articulated principles laid down for it. We look only at assets which are completely viable in terms of inputs and output.
“Unless the basic operation of an asset is profitable, we are not interested even if it comes cheap,” he said, adding that the power ministry has sorted out several issues facing the sector.
In 2009, CESC acquired Dhariwal Infrastructure Ltd’s 600 MW Chandrapura thermal project in Maharashtra.
However, the project now has accumulated losses of ?600 crore, but is expected to turn revenue positive once a Power Purchase Agreement (PPA) for 150 MW is signed over the next three months.
“We have so far tied up for almost 300 MW and another 150 MW is expected over the next three months. With this, our total PPA for Chandrapura will be 450 MW, out of 540 MW effective capacity. Annual revenue will be about ?600 crore and with this, we will be profitable,” Goenka said.
Haldia Energy, which operates a 600-MW thermal power plant at Haldia, has achieved 100 per cent ash utilisation and is exporting ash to Bangladesh for cement making. Ronnie Harrison Authentic JerseyShare This