Kolkata: The RP-Sanjiv Goenka group flagship CESC has decided not to go big with renewable energy for its low returns on investment and falling tariff.
Speaking at the AGM on Friday, chairman Sanjiv Goenka said the company would go for aggressive bidding to take power distribution franchise in more towns instead. Goenka was replying to the shareholders of the power utility on Friday.
“Besides regulatory requirement, we shall not invest heavily in renewables. It needs a huge investment, but the return is low. Most of the renewable companies are not doing well. We shall remain in generation and distribution,” he added.
CESC has already started distribution in Malegaon, Maharastra and in two towns of Rajasthan.
Commenting on power tariff in the city, Goenka claimed that it is one of the lowest among all the utilities. “Cost of fuel has gone up as coal price has gone up but we have refrained from hiking price,” he added.
According to him, the company invested around Rs 10,000 crore in last five years to augment and strengthen its distribution network in Kolkata.