Calcutta Electric Supply Corporation
Encyclopedia
The Calcutta Electric Supply Corporation or CESC supplies electricity
to area under the Kolkata municipal corporation
in the city of Kolkata
, India
, mainly but also few areas of Howrah, Hooghly
, 24 Parganas (North) and 24 Parganas (South) districts of West Bengal
, India.
switched to electricity from horse drawn carriages in 1902. Three new power generating stations were started by 1906. The company was shifted to the Victoria House in Dharmatala
in 1933, and still operates from this address. Load-shedding (interruption of power supply due to shortage of electricity) was common in Kolkata during 1970s and 1980s. In 1978 the company was christened as The Calcutta Electric Supply Corporation (India) Limited. The RPG Group
was associated with The Calcutta Electric Supply Corporation (India) Limited from 1989, and they change the name from The Calcutta Electric Supply Corporation (India) Limited to CESC Limited. Recently the Calcutta power grid has seen progressively better performance and lesser outages.In the power sector, CESC, currently having a generating capacity of 1225 MW, has major plans to expand generating capacity to 7000 MW over the next five or six years. The new power generating projects – thermal, hydel and solar -- will involve investments of more than ` 30,000 crore.Presently CESC Ltd is the flagship company of RP-SANJIV GOENKA GROUP.
Through the times
YEAR EVENTS
1978 - The Company was incorporated on 28th March. A scheme of
arrangement and amalgamation between the Calcutta Electricity
Supply Corporation Ltd. (CESC), its stock holders and the
Company
dated 6th December 1978 became operative from 2nd April 1979.
The Company owns and works the Calcutta and District
Consolidate
Electric License 1946 (granted licenses) for the supply of
electricity for all purposes in and around Calcutta.
1979 - The Company issued and allotted on 7th April, 71,94,951 No.
of
equity shares of Rs 10 each and 32,07,029 - 7 1/2% preference
shares of Rs 10 each credited as fully paid-up to the persons
who, at the close of business on 1st April, were the holders
respectively of the CESC Ordinary Stock: For every 5 nominal
of
6% cumulative preference stock of CESC and for every 5
nominal
of ordinary stock of CESC, eight equity shares of Rs 10 each
of
the Company.
1981 - Issued 3,00,000 No. of equity shares to ICICI. 6,50,000 No.
of
Equity shares to IDBI and 3,00,000 No. of equity shares to
LIC
all at par in part conversion of loans.
1985 - The Company issued 8,50,000 - 15% secured, redeemable,
non-convertible debentures of Rs 100 each on rights basis in
February to meet its working capital requirements.
1986 - The Company secured during the year a contract for erection
of
their Lalmatia (Bihar) 220/132 KV substation. Another
contract
was secured from BHEL for erection of their 400 KV substation
at
Kolaghat (West Bengal). The company was also entrusted with
the
preparation of feasibility studies for captive power
generation
projects.
1987 - The name of the Company was changed from The Calcutta
Electric
Supply Corporation Ltd., to CESC Ltd., with effect from 1st
of
January.
1988 - A Memorandum of Understanding was signed between the
consultancy
& Contracts division and the company by Neyveli Lignite
Corporation for cabling work. A MOU was signed between the
Consultancy & Contracts Division and MECON, a public sector
consultancy firm to jointly undertake consultancy and
construction contracts in power and engineering field both in
and
outside India.
1991 - All statutory clearances were received for the 500 MW power
station at Budge Budge.
- The Company proposed to set up a 3 x 250 MW coalfired thermal
power station at Balagarh.
- The Company proposed to issue 20% secured redeemable
non-convertible debentures aggregating Rs 20 crores on
private
placement basis to financial institutions.
- During March, the Company offered 33,89,006 No. of equity
shares
of Rs 10 at a premium of Rs 15 per share to the equity
shareholders on Rights basis in the proportion of 1:5 and
1,69,451 No. of equity shares of Rs 10 each at a premium of Rs
15
per share to the permanent employees/workers of the Company on
an
equitable basis.
- The company issued 8,71,500-12.5% secured redeemable partly
convertible debentures of Rs 600 each as follows: (i)
4,65,000
debentures were reserved for a preferential allotment to the
equity shareholders; (ii) 43,575 debentures were reserved for
preferential allotment to the permanent employees/workers of
the
Company on an equitable basis and (iii) 3,62,925 debentures
were
offered to the Indian Public.
- Part `A' of Rs 250 of each debentures was to be converted into
10
equity shares of Rs 10 each at a premium of Rs 15 per share
at
the end of six months from the date of allotment.
- Part `B' of Rs 350 of each debenture was to be redeemed at par
in
5 equal instalments of Rs 70/- each at the end of 7th to 11th
years from the date of allotment.
- The Company allotted (including permitted retention) 9,17,598
debentures and 39,94,596 No. of equity shares effective 11th
June, 1991 respectively.
1992 - The Company proposed to undertake the project for a high
installed capacity of 1,500 MW to be completed in three states
-
Stage-I of the project comprising 2 x 250 MW units having an
installed capacity of 500 MW which will be followed by one 500
MW
unit in the second stage and another 500 MW unit in the third
stage.
- The Company finalised to issue 1,55,43,240-16% secured
redeemable
non-convertible debentures of Rs 100 each for cash at par in
order to raise resources for meeting a part of the
requirements
of the Budge Budge power station project and also for meeting
the
Company's working capital needs.
1993 - Approvals/clearances were received. The Company entered into
an
agreement with Rolls Royce Power generation system for
turnkey
execution of the project.
1994 - The Company proposed to set up a 1500 MW thermal generating
station to be completed in 3 stages.
- During April, the Company issued 83,66,140 Global Depository
receipts representing 83,66,140 shares together 33,46,456
warrants to subscribe for GDRs in units of 5 GDRs and 2
warrants.
The issue price was US $ 53.34 per unit.
1995 - A new Company Integrated Coal Mining Pvt. Ltd. was promoted
by
the Company to undertake the work of particularly power
companies
to be directly involved in mining.
- The Company issued 3,00,000 - 14% secured redeemable
non-convertible debentures of Rs 100 each on private
placement
basis to financial institutions. These debentures are
redeemable
in five equal annual instalments at a premium of 5% from 9th
April.
- 50,00,000 No. of equity shares allotted on conversion of
warrants
attached to 16% NCD.
1996 - The Company has promoted a new company Balagarh Power Company
Ltd., for setting up a 1500 MW thermal power station.
- CESCON, Ltd. is a wholly owned subsidiary of the Company. It
carries on consultancy contracts and other allied business
independently.
- 89,31,620 No. of equity shares of Rs 10 each allotted at a
price
of Rs 50 per share on conversion of warrants. 30,14,465 No.
of
equity shares of Rs 10 each Rs 1 paid up allotted at a price
of
Rs 50 per share on conversion of warrants. 34,97,000 No. of
equity shares of Rs 10 each. Rs 1 paid up allotted at Rs 80
per
share on conversion of warrants.
1997 - 120,00,000 pref. shares redeemed. 8,103 No. of equity shares
allotted on conversion of warrants attached to 16% NCD.
- CESC is also setting up a 1,500-mw thermal power station in
two
or three stages at Balagarh.
- The largest disadvantage for the company is that it is
situated
in a state which is the strong hold of the Leftists.
1998 - The long term rating of Rs.1550 million Non Convertible
Debenture
Programme of CESC Ltd. has been downgraded from LAA to LA,
indicating adequate safety, by Investment Information and
Credit
Rating Agency (ICRA).
- The Calcutta Electric Supply Corporation, renamed CESC Ltd.
in
1987, has been lighting up Calcutta for over 100 years.
- The company are the 2 per cent effective tariff increase
after
several months, which came in November 1996.
- 20,00,000-14.5% pref. shares redeemed. 101,88,665 equity
shares
of Rs. 10 each Rs. 5 per share paid up allotted on 15th Feb.
1999
on conversion of equity warrants `B' attached to 15% NCD.
1999 - CESC Ltd. has demanded another hike in the fuel surcharge
(FSC)
rates for a three year span form 1996-97 to 1998-99.
- CESC's existing licensing agreement will be made to include
borderline areas of the city currently within the jurisdiction
of
WBSEB.
- The company has grown into a 650 MW capacity generating and
distributing network.
- The company has initiated a series of interactive programmes
on
Building Excellent Service Provider for its employees.
2000 - ICRA has downgraded the rating of the Rs 155.3 crore NCD issue
of the
company to LBBB+.
2001 - The Titagarh Thermal Power Station of CESC Ltd. has been
awarded the
ISO 9002 certification.
2002
-CESC Board approves proposal for amalgamation of subsidiary.
-Appoints Mr Tarun Kumar Ray as the Nominee director of IFCI on the
Board of the company
-Court orders the company to pay Rs. 3 cr to Damodar Valley
Corporation.
-Government nominates Mr Birenjit Kumar Paul on the Board of the
company.
2003
-Chemithon Engineers Ltd along with Heavy Water Board of the
Government starts work on development of a process to bring down
emission levels at the company.
-Unveils multi-pronged scheme to curb pollution at its thermal power
facilities.
-Board approves to allot shares to Management Group & Associates.
-Introduces Voluntary Separation Scheme for all permanent employees
of the company who have completed 10 years of service and attained 40
years of age.
-2300 employees apply for CESC's retirement scheme
2004
--Hindustan Lever Ltd tied up with the private sector power utility,
CESC Ltd, for sampling of Pepsodent toothpaste. `Touchbase with
Kolkata' project said that with its April bills CESC would be sending
out 14.1 lakh covers carrying the Pepsodent label and a small 15 gm
tube of toothpaste with a new flavour.
-PTC forges alliance with CESC
-CESC ties up with HLL
2005
-CESC ties up with Power Finance Corporation (PFC) to repay debt
-CESC executes MoU with Govt of Jharkhand
2008
-CESC Ltd has forayed into a memorandum of understanding with the
Government of Bihar to establish a 2,000-MW power plant in the
State's Bhagalpur district at an investment of Rs 10,000 crore.
Source : Dion Global Solutions Limited
Electricity
Electricity is a general term encompassing a variety of phenomena resulting from the presence and flow of electric charge. These include many easily recognizable phenomena, such as lightning, static electricity, and the flow of electrical current in an electrical wire...
to area under the Kolkata municipal corporation
Kolkata Municipal Corporation
Kolkata Municipal Corporation is responsible for the civic infrastructure and administration of the city of Kolkata. The organization is known, in short, as KMC . This civic administrative body administers an area of 185 sq. km. Its motto, Purosree Bibardhan, is inscribed on its emblem in Bengali...
in the city of Kolkata
Kolkata
Kolkata , formerly known as Calcutta, is the capital of the Indian state of West Bengal. Located on the east bank of the Hooghly River, it was the commercial capital of East India...
, India
India
India , officially the Republic of India , is a country in South Asia. It is the seventh-largest country by geographical area, the second-most populous country with over 1.2 billion people, and the most populous democracy in the world...
, mainly but also few areas of Howrah, Hooghly
Hooghly District
Hooghly district is one of the districts of the state of West Bengal in India. It can alternatively be spelt Hoogli or Hugli. The district is named after the Hooghly River.The headquarters of the district are at Chinsura...
, 24 Parganas (North) and 24 Parganas (South) districts of West Bengal
West Bengal
West Bengal is a state in the eastern region of India and is the nation's fourth-most populous. It is also the seventh-most populous sub-national entity in the world, with over 91 million inhabitants. A major agricultural producer, West Bengal is the sixth-largest contributor to India's GDP...
, India.
History
On 7 January 1897 Kilburn & Co. secured the Calcutta (Now Kolkata) electric lighting license as agents of The Indian Electric Company Limited. The company soon changed its name to the Calcutta Electric Supply Corporation Limited. The first power generating station was started on April 17 1899 near the Princep Ghat. The Calcutta Tramways CompanyCalcutta Tramways Company
The Calcutta Tramways Company Limited is a West Bengal, India government-run company which runs trams in Kolkata and buses in and around Kolkata...
switched to electricity from horse drawn carriages in 1902. Three new power generating stations were started by 1906. The company was shifted to the Victoria House in Dharmatala
Dharmatala
Dharmatala is a neighbourhood in central Kolkata, earlier known as Calcutta, in the Indian state of West Bengal. Dharmatala Street has been renamed Lenin Sarani but the neighbourhood continues to be referred to as Dharmatala...
in 1933, and still operates from this address. Load-shedding (interruption of power supply due to shortage of electricity) was common in Kolkata during 1970s and 1980s. In 1978 the company was christened as The Calcutta Electric Supply Corporation (India) Limited. The RPG Group
RPG Group
The RPG Group one of India's largest industrial conglomerate headquartered in Mumbai, India. It was founded by RP Goenka in 1979, and initially encompassed Phillips Carbon Black, Asian Cables, Agarpara Jute and Murphy India...
was associated with The Calcutta Electric Supply Corporation (India) Limited from 1989, and they change the name from The Calcutta Electric Supply Corporation (India) Limited to CESC Limited. Recently the Calcutta power grid has seen progressively better performance and lesser outages.In the power sector, CESC, currently having a generating capacity of 1225 MW, has major plans to expand generating capacity to 7000 MW over the next five or six years. The new power generating projects – thermal, hydel and solar -- will involve investments of more than ` 30,000 crore.Presently CESC Ltd is the flagship company of RP-SANJIV GOENKA GROUP.
Through the times
YEAR EVENTS
1978 - The Company was incorporated on 28th March. A scheme of
arrangement and amalgamation between the Calcutta Electricity
Supply Corporation Ltd. (CESC), its stock holders and the
Company
dated 6th December 1978 became operative from 2nd April 1979.
The Company owns and works the Calcutta and District
Consolidate
Electric License 1946 (granted licenses) for the supply of
electricity for all purposes in and around Calcutta.
1979 - The Company issued and allotted on 7th April, 71,94,951 No.
of
equity shares of Rs 10 each and 32,07,029 - 7 1/2% preference
shares of Rs 10 each credited as fully paid-up to the persons
who, at the close of business on 1st April, were the holders
respectively of the CESC Ordinary Stock: For every 5 nominal
of
6% cumulative preference stock of CESC and for every 5
nominal
of ordinary stock of CESC, eight equity shares of Rs 10 each
of
the Company.
1981 - Issued 3,00,000 No. of equity shares to ICICI. 6,50,000 No.
of
Equity shares to IDBI and 3,00,000 No. of equity shares to
LIC
all at par in part conversion of loans.
1985 - The Company issued 8,50,000 - 15% secured, redeemable,
non-convertible debentures of Rs 100 each on rights basis in
February to meet its working capital requirements.
1986 - The Company secured during the year a contract for erection
of
their Lalmatia (Bihar) 220/132 KV substation. Another
contract
was secured from BHEL for erection of their 400 KV substation
at
Kolaghat (West Bengal). The company was also entrusted with
the
preparation of feasibility studies for captive power
generation
projects.
1987 - The name of the Company was changed from The Calcutta
Electric
Supply Corporation Ltd., to CESC Ltd., with effect from 1st
of
January.
1988 - A Memorandum of Understanding was signed between the
consultancy
& Contracts division and the company by Neyveli Lignite
Corporation for cabling work. A MOU was signed between the
Consultancy & Contracts Division and MECON, a public sector
consultancy firm to jointly undertake consultancy and
construction contracts in power and engineering field both in
and
outside India.
1991 - All statutory clearances were received for the 500 MW power
station at Budge Budge.
- The Company proposed to set up a 3 x 250 MW coalfired thermal
power station at Balagarh.
- The Company proposed to issue 20% secured redeemable
non-convertible debentures aggregating Rs 20 crores on
private
placement basis to financial institutions.
- During March, the Company offered 33,89,006 No. of equity
shares
of Rs 10 at a premium of Rs 15 per share to the equity
shareholders on Rights basis in the proportion of 1:5 and
1,69,451 No. of equity shares of Rs 10 each at a premium of Rs
15
per share to the permanent employees/workers of the Company on
an
equitable basis.
- The company issued 8,71,500-12.5% secured redeemable partly
convertible debentures of Rs 600 each as follows: (i)
4,65,000
debentures were reserved for a preferential allotment to the
equity shareholders; (ii) 43,575 debentures were reserved for
preferential allotment to the permanent employees/workers of
the
Company on an equitable basis and (iii) 3,62,925 debentures
were
offered to the Indian Public.
- Part `A' of Rs 250 of each debentures was to be converted into
10
equity shares of Rs 10 each at a premium of Rs 15 per share
at
the end of six months from the date of allotment.
- Part `B' of Rs 350 of each debenture was to be redeemed at par
in
5 equal instalments of Rs 70/- each at the end of 7th to 11th
years from the date of allotment.
- The Company allotted (including permitted retention) 9,17,598
debentures and 39,94,596 No. of equity shares effective 11th
June, 1991 respectively.
1992 - The Company proposed to undertake the project for a high
installed capacity of 1,500 MW to be completed in three states
-
Stage-I of the project comprising 2 x 250 MW units having an
installed capacity of 500 MW which will be followed by one 500
MW
unit in the second stage and another 500 MW unit in the third
stage.
- The Company finalised to issue 1,55,43,240-16% secured
redeemable
non-convertible debentures of Rs 100 each for cash at par in
order to raise resources for meeting a part of the
requirements
of the Budge Budge power station project and also for meeting
the
Company's working capital needs.
1993 - Approvals/clearances were received. The Company entered into
an
agreement with Rolls Royce Power generation system for
turnkey
execution of the project.
1994 - The Company proposed to set up a 1500 MW thermal generating
station to be completed in 3 stages.
- During April, the Company issued 83,66,140 Global Depository
receipts representing 83,66,140 shares together 33,46,456
warrants to subscribe for GDRs in units of 5 GDRs and 2
warrants.
The issue price was US $ 53.34 per unit.
1995 - A new Company Integrated Coal Mining Pvt. Ltd. was promoted
by
the Company to undertake the work of particularly power
companies
to be directly involved in mining.
- The Company issued 3,00,000 - 14% secured redeemable
non-convertible debentures of Rs 100 each on private
placement
basis to financial institutions. These debentures are
redeemable
in five equal annual instalments at a premium of 5% from 9th
April.
- 50,00,000 No. of equity shares allotted on conversion of
warrants
attached to 16% NCD.
1996 - The Company has promoted a new company Balagarh Power Company
Ltd., for setting up a 1500 MW thermal power station.
- CESCON, Ltd. is a wholly owned subsidiary of the Company. It
carries on consultancy contracts and other allied business
independently.
- 89,31,620 No. of equity shares of Rs 10 each allotted at a
price
of Rs 50 per share on conversion of warrants. 30,14,465 No.
of
equity shares of Rs 10 each Rs 1 paid up allotted at a price
of
Rs 50 per share on conversion of warrants. 34,97,000 No. of
equity shares of Rs 10 each. Rs 1 paid up allotted at Rs 80
per
share on conversion of warrants.
1997 - 120,00,000 pref. shares redeemed. 8,103 No. of equity shares
allotted on conversion of warrants attached to 16% NCD.
- CESC is also setting up a 1,500-mw thermal power station in
two
or three stages at Balagarh.
- The largest disadvantage for the company is that it is
situated
in a state which is the strong hold of the Leftists.
1998 - The long term rating of Rs.1550 million Non Convertible
Debenture
Programme of CESC Ltd. has been downgraded from LAA to LA,
indicating adequate safety, by Investment Information and
Credit
Rating Agency (ICRA).
- The Calcutta Electric Supply Corporation, renamed CESC Ltd.
in
1987, has been lighting up Calcutta for over 100 years.
- The company are the 2 per cent effective tariff increase
after
several months, which came in November 1996.
- 20,00,000-14.5% pref. shares redeemed. 101,88,665 equity
shares
of Rs. 10 each Rs. 5 per share paid up allotted on 15th Feb.
1999
on conversion of equity warrants `B' attached to 15% NCD.
1999 - CESC Ltd. has demanded another hike in the fuel surcharge
(FSC)
rates for a three year span form 1996-97 to 1998-99.
- CESC's existing licensing agreement will be made to include
borderline areas of the city currently within the jurisdiction
of
WBSEB.
- The company has grown into a 650 MW capacity generating and
distributing network.
- The company has initiated a series of interactive programmes
on
Building Excellent Service Provider for its employees.
2000 - ICRA has downgraded the rating of the Rs 155.3 crore NCD issue
of the
company to LBBB+.
2001 - The Titagarh Thermal Power Station of CESC Ltd. has been
awarded the
ISO 9002 certification.
2002
-CESC Board approves proposal for amalgamation of subsidiary.
-Appoints Mr Tarun Kumar Ray as the Nominee director of IFCI on the
Board of the company
-Court orders the company to pay Rs. 3 cr to Damodar Valley
Corporation.
-Government nominates Mr Birenjit Kumar Paul on the Board of the
company.
2003
-Chemithon Engineers Ltd along with Heavy Water Board of the
Government starts work on development of a process to bring down
emission levels at the company.
-Unveils multi-pronged scheme to curb pollution at its thermal power
facilities.
-Board approves to allot shares to Management Group & Associates.
-Introduces Voluntary Separation Scheme for all permanent employees
of the company who have completed 10 years of service and attained 40
years of age.
-2300 employees apply for CESC's retirement scheme
2004
--Hindustan Lever Ltd tied up with the private sector power utility,
CESC Ltd, for sampling of Pepsodent toothpaste. `Touchbase with
Kolkata' project said that with its April bills CESC would be sending
out 14.1 lakh covers carrying the Pepsodent label and a small 15 gm
tube of toothpaste with a new flavour.
-PTC forges alliance with CESC
-CESC ties up with HLL
2005
-CESC ties up with Power Finance Corporation (PFC) to repay debt
-CESC executes MoU with Govt of Jharkhand
2008
-CESC Ltd has forayed into a memorandum of understanding with the
Government of Bihar to establish a 2,000-MW power plant in the
State's Bhagalpur district at an investment of Rs 10,000 crore.
Source : Dion Global Solutions Limited