telegraphindia.com 13 Jan, 2021 23:00 am

CESC plans to rejig business

CESC plans to rejig business
The board of the company approved a plan to ‘reorient and reorganise’ the power distribution business under a wholly owned step down subsidiary

CESC plans to rejig business The board of the company approved a plan to ‘reorient and reorganise’ the power distribution business under a wholly owned step down subsidiary In 2018, CESC had hatched a grand plan to split the company into four separate entities — power generation, power distribution, retail and new business, and had received an approval from the National Company Law Tribunal.21, 01:47 AM CESC Ltd is taking another shot at consolidating its power distribution business under one umbrella — but with a twist — after aborting such a plan more than two years back.The board of the company, the flagship of the RP-SG Group, met on Wednesday to approve a plan to ‘reorient and reorganise’ the power distribution business under a wholly owned step down subsidiary, Eminent Electricity Distribution Ltd, sans the Calcutta licence area.Under the present plan, three distribution franchisees in Rajasthan — Kota, Bharatpur and Bikaner — and one each in Maharashtra (Malengaon) and Uttar Pradesh (Noida) will be put under Eminent, apart from any other distribution business that may come up in the future.

However, the West Bengal State Electricity Regulatory Commission threw a spanner into the plan, vetoing the separation of the Calcutta distribution business, the oldest and most profitable part of the company, from CESC.Advertisement Break from the past In 2018, CESC had hatched a grand plan to split the company into four separate entities — power generation, power distribution, retail and new business, and had received an approval from the National Company Law Tribunal.

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