CESC names Sanjiv Goenka as new chairman

KOLKATA: The CESCBSE -0.36 % board on Tuesday appointed Sanjiv Goenka, the younger son of late Rama Prasad Goenka, as the chairman of the company. Sanjiv was the vice-chairman of the company while his father, who died in April this year, was the chairman. 

The power utility's managing director
Sumantra Banerjee, who handled responsibilities of the company since April 1992, and has been on extension since his retirement six years ago, also decided to step down. The board accepted his proposal and nominated Aniruddha Basu, currently executive director - distribution services, as his successor. 

"Banerjee will step down on July 31 and Basu will take over on August 1. Banerjee will, however, continue as advisor to the chairman," said Goenka, after declaring the company's results on Tuesday. 

"Banerjee has been with CESC for the last 29 years and is now 64 years old. He was made the managing director in 1992 and has been managing the affairs of the company since then. He expressed his desire to step down, which the board accepted," Goenka said. 

"Basu is an electrical engineer and holds a special management degree from IIM, Calcutta. He joined the company in June 1982 and has held a series of important assignments in the company. Recently, he has been responsible for organising a drive to improve the company's consumer services and in making CESC one of the best companies in India with respect to consumer services," a company release said. 

On Tuesday, the Kolkata-based RP-Sanjiv Goenka group flagship company CESC declared a 12% rise in profit after tax to 619 crore during 2012-13 against 554 crore in the previous fiscal. 

"The rise in PAT has been on the back of a 3.7% rise in gross revenue at 5,242 crore during the fiscal against 4,805 crore in the previous fiscal," Goenka said. 

The rise in revenue was largely due to an increased demand for power and rise in power tariff allowed by the regulators. 

During the fourth quarter of 2012-13, the company registered a marginal Rs 1 crore rise in net profit at Rs 256 crore. Total income from operations grew about 9% to Rs 1,513 crore during the quarter against Rs 1,391 crore in the previous period. Profit from operations for the period stood at Rs 381 crore against Rs 346 crore, a rise of 10%. 

"We hope to add 600 mw of new capacity by December 2014 from the Haldia project which is being implemented at Rs 4,000 crore. The group also hopes to add another 600 mw soon from its Chandrapura plant," Goenka added.