Kolkata, Nov 10: Private power utility CESC Ltd will invest Rs 2,000 crore in the next three to five years for technology upgradation to revamp its distribution network through a tie-up with a Singapore-based company. Announcing this on Monday, Nov 10, CESC Vice-Chairman Sanjiv Goenka said a large part of the fund would be spent on technology upgradation to minimise the 'downtime' owing to power failure and jack up the company's revenues.
"We are ready to add new substations, distribution stations, underground cables and initate work for lending greater reliability to the network. This will substantially improve our 4,000 circuit km distribution network to cater to the existing two million consumers as well as improve revenues by reducing the downtime," he said.
With this objevtive in view, CESC entered into an agreement with SP Global Solutions, a subsidiary of Singapore Power, 'one of Asia Pacific's leading' energy utilities, for providing consultancy support aimed at improving the standard of distribution and increasing the the number of breakdown free days in the CESC licensed area.
"We are perhaps the first major power company in India to induct a world leader in rejuvenating our distribution system. With assets about 29 billion Singapore dollars of this group, Singapore Power operates in a licensed area of 600 sq. km with a consumer base of 1.3 million and meeting the maximum demand of about 6,000 MW, which is four times our demand," Mr Goenka said.
SGPS, the consultancy arm of the Singapore Power Group, provides training and consultancy services to utility companies in China, the Gulf region and Southeast Asia to upgrade their energy infrastructre and expand capacity to support their economic growth.
It will be a one year process, during which experts from Singapore will have in-depth analysis and study to infuse the standard operational processes.
Mr Goenka said the amount being invested was almost double the amount of Rs 200 to 250 crore normally put in by the company every year.
The entire fund would be raised through internal accruals, he added.