Hit by cost escalation, CESC to pump fresh equity into 2 coal-fired projects.

CESC Ltd's two coal-fired power generation projects at Chandrapur in Maharashtra and Haldia in West Bengal, which have seen cost over-runs of around Rs. 800 crore, will see an increase in borrowings and equity.

Sanjeev Goenka, Chairman of CESC, said the cost over-run could be Rs. 700-800 crore. 'Exact numbers are being worked out. We would need to borrow more and chip in equity to maintain the debt-equity ratio at 1:3.'

The cost escalation was primarily because of the rupee going down against the dollar during the past seven project execution years. 'When we conceived the projects, which had significant capital equipment import components, a dollar was at Rs. 45 and now it is around Rs. 63,' he said.

Dhariwal Infrastructure Ltd., a wholly-owned subsidiary of CESC, is putting up the (2X300 MW) Chandrapur project. Haldia Energy Ltd., another 100 per cent subsidiary of the company, is setting up the (2X300 MW) Haldia project.

CESC has commissioned its first Chandrapur unit and the second unit is in an advanced stage of commissioning.

HBL