CESC set to seek shareholder nod for mortgaging properties

July 12, 2012 11:27 pm | Updated November 16, 2021 10:52 pm IST - KOLKATA:

CESC has had to increase its borrowings and hike its working capital exposure to finance its capital expenditure It proposes to seek shareholders nod for mortgaging its properties in order to secure these loans.

Its increased borrowings amounting to Rs.450 crore has been availed from Punjab Sind Bank and the State Bank of Patiala. Additionally, the working capital has also been increased by State Bank of India, Yes Bank and HDFC Bank to the extent of Rs.119. 89 crore. Its league of lenders comprise10 nationalised public sector banks, five private sector banks and two foreign banks.

The company, which is now trying to mark its presence in other states as part of its plans to increase capacity to 10,000 MW by 2020 from 1,225 MW now, had said that it planned to spend Rs.35000 crore.

Aside from the project that it acquired in Chandrapura in Maharshtra, it has signed a pact with the Bihar State Electricity Board for setting up a 2,000 MW project in Bhagalpur district. It is acquiring land for a 2x660 MW thermal power plant based on super critical technology in Dhankanal in Gujarat. It had already commissioned a 9 MW solar power project in Kutch. It is setting up another at Bikaner in Rajasthan.

It has signed an agreement with the Arunachal Pradesh Government for developing a 90 MW hydel project and has acquired two more with an aggregate capacity of 146 MW. CESC said that orders had been placed for the Rs.3,100 crore Haldia project (600 MW) and plans for tapping private equity fund for financing the company’s new projects has now been dropped with improved finances.

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