CESC secures ₹871 crore LoI to acquire the Chandigarh power distribution business. This acquisition is a major step for the RP-Sanjiv Goenka Group, enhancing its presence in India’s electricity distribution sector. Eminent Electricity Distribution Ltd, a CESC subsidiary, will take control of the power distribution network in the region.
CESC outbids competitors for ₹871 crore deal
CESC’s bid of ₹871 crore won out over those from major players like Torrent Power, NTPC Ltd, and ReNew Power. These companies had placed lower bids, with Torrent Power quoting ₹606 crore and NTPC Ltd ₹563 crore. This deal highlights CESC’s strategic move to expand its power distribution footprint.
Legal hurdles cleared: CESC secures the tender
After nearly three years of delays due to legal challenges from trade unions, CESC has secured the LoI for the acquisition. The Punjab and Haryana High Court recently dismissed the objections, enabling the privatisation of Chandigarh’s power services. This clears the path for CESC to proceed with the deal.
CESC expands power distribution network across India
CESC already operates in cities like Kolkata, Noida, and Kota, and this acquisition further strengthens its reach. With a growing footprint in both urban and rural areas, CESC is positioning itself as a major player in the power distribution industry.
CESC secures ₹871 crore acquisition with positive financial impact
The ₹871 crore deal is set to complete within 30 days, pending conditions in the LoI. This acquisition will support CESC’s growth strategy, further diversifying its portfolio. The company reported a 1.4% increase in net profit for the quarter ending September 30, 2024, reinforcing its financial strength.
CESC’s ₹871 crore acquisition of Chandigarh’s power distribution business marks a significant milestone in the company’s expansion strategy. With this acquisition, CESC not only strengthens its position in the Indian power sector but also contributes to enhancing the efficiency of electricity distribution in Chandigarh. As the company continues to broaden its reach across India, this deal underscores CESC’s commitment to delivering reliable power supply while driving growth in the energy sector.
