Ahead of the proposed demerger of CESC Ltd's diversified businesses, Sanjiv Goenka has roped in Reliance Energy's former chief executive officer Debasish Banerjee to head the planned power distribution entity.
ADAG group had recently sold off its entire distribution and generation business of Mumbai, which was being headed by Banerjee, to Adani Transmission for Rs 13,251 crore.
Sanjiv Goenka has also appointed Rabi Chowdhury for the company's planned generation business arm, CESC Genco. Currently, Chowdhury is in charge of the operations of Haldia Energy, a subsidiary firm managing a power plant in Haldia.
Debasish Banerjee would be the managing director of the listed CESC, which would retain distribution operations of Kolkata, newly acquired distribution franchisees in several cities of Rajasthan and the distribution business in Noida, currently housed under the unlisted entity Noida Power Company.
The Kolkata-based company's power generation business in West Bengal, Noida and Maharashtra would be demerged into CESC Genco.
Spencer's Retail would own the retail operations while other businesses like the recently-launched FMCG food, Firstsource's ITeS business, Quest shopping mall in Kolkata and others like sports would be housed under CESC Ventures.
The parent company has plans to list all the demerged entities, although there has been some delays in getting approval from regulators.
The National Company Law Tribunal (NCLT) in March had approved the unbundling scheme, but Sanjiv Goenka requires West Bengal Electricity Regulatory Commission's approval for a power purchase agreement (PPA) to be entered between the demerged generation company and the distribution entity.
Motilal Oswal recently commented in a research report that the management is hopeful of obtaining approval for the PPA followed by a listing around August.
Announcing these appointments on Wednesday, CESC said the current managing director Aniruddha Basu has tendered his resignation following the completion of his term.
Brij Mohan Khaitan, an independent director and head of BM Khaitan group that owns McLeod Russel and Eveready Industries, has also resigned.
RECAST TIME
- Debasish Banerjee would be the managing director of CESC distribution operations
- Rabi Chowdhury appointed for the company's planned generation business arm
- Power generation business in West Bengal, Noida and Maharashtra would be demerged into CESC Genco
