BUSINESS

CESC to seek shareholders' nod for mortgaging assets

Special Correspondent

KOLKATA: RPG group owned power utility, CESC, is planning to seek shareholders' nod at its forthcoming annual general meeting, for mortgaging its properties against a total loan exposure of about Rs. 1,666 crore. Company sources said that the utility, which is trying to spread out to other states, saw a likely need for rupee and /or foreign currency assistance of about Rs. 1,000 crore. The group is already in talks with governments in Orissa, Karnataka and Rajasthan for setting up projects, sources said.

It may be mentioned that CESC had already raised Rs. 666 crore from a clutch of lenders, including Power Finance Corporation, for retiring its earlier costlier loans.

During 2004-05, CESC's total income, at Rs. 2,387 crore, was lower than the previous year with lower tariffs, but with improved performance, its net profit increased to Rs. 147 crore (Rs. 82 crore in 2003-04).

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