The Hindu Business Line : CESC scouts coal blocks abroad

KOLKATA: Power generation and distribution company CESC on Thursday said it was looking at acquiring coal blocks overseas and talking to three private equity funds to offload 20 per cent stake in the retail subsidiary, Spencer's Retail.

“We are looking for coal blocks in South Africa, Indonesia and Australia,” CESC Vice-Chairman Mr Sanjiv Goenka said, announcing the second quarter results. Mr Goenka said he was open to acquisitions and finance would not be a constraint.

The company was looking at coal blocks with reserve between 30 million to 600 million tonnes and captive blocks, he said. Mr Goenka said the financial closure of the 600 MW Chandrapur project in Maharastra would be over by November 10 which would cost R s 2850 crore.

ICICI Bank is the lead arranger of the debt for the project to be financed in a 70:30 debt equity ratio. On the retail venture, Mr Goenka said the company was in talks with three PE funds to offload 20 per cent stake.

“We prefer one PE and we may not offer to the highest bidder as we also want the fund to facilitate some expertise in the retail business,” he said. CESC's net profit rose by 1.61 per cent to Rs 126 crore for the second quarter ended September 30, 2009, over the same period last year.

Total income increased to Rs 985 crore in the latest quarter against Rs 786 crore in the same period previous fiscal. - PTI

Prev: Rupee down 25 paise at 47.59/dollar
Next: Spanish co to advise govt on natural gas pricing

Business Line | NUS Index |

Copyright copy; 2009, The Hindu Business Line. Republication or redissemination of the contents of this screen are expressly prohibited without the written consent of The Hindu Business Line