CESC Limited has announced a significant development in the renewable energy sector through its subsidiary's partnership for a major wind energy project in Andhra Pradesh. The company informed stock exchanges about this strategic collaboration under regulatory disclosure requirements.

Contract Partnership and Scope

Deshraj Solar Energy Private Limited, a subsidiary of CESC Limited, has entered into a tower supply contract with Toolfab Renewable Energy Infra Private Limited. Under this agreement, Toolfab will supply 91 wind turbine generator towers for a substantial 300MW renewable energy project.

Project Location and Strategic Development

The wind project will be developed across two villages in Andhra Pradesh - Ralla and Kurburahalli. This strategic location selection aligns with the state's focus on renewable energy development and wind power generation capabilities. The 300MW capacity represents a significant addition to the region's clean energy infrastructure.

Implementation and Delivery Framework

Toolfab Renewable Energy Infra Private Limited will handle all necessary arrangements to ensure timely delivery of the 91 towers to Deshraj Solar Energy. The company has committed to completing deliveries within 12 months from the date of receiving the notice to proceed, providing a clear timeline for project implementation.

Regulatory Compliance and Transaction Structure

CESC Limited has confirmed that this contract does not constitute a related party transaction. The company stated that promoters, promoter groups, or group companies of Deshraj have no interest in Toolfab Renewable Energy Infra Private Limited. This disclosure was made pursuant to Regulation 30 of SEBI (Listing Obligations and Disclosure Requirements) Regulations, 2015.

Toolfab Renewable Energy Infra Private Limited operates as a domestic entity with CIN U42209KA2024PTC191977, ensuring compliance with local regulatory frameworks for the wind energy sector.

CESC Limited , a leading power utility company, has unveiled its ambitious Growth Vision 2030, setting the stage for significant expansion and transformation in the coming years. The company's investor presentation outlines a strategic roadmap aimed at doubling profitability by FY30, with a strong focus on renewable energy and distribution expansion.

Renewable Energy at the Forefront

CESC has set aggressive targets for its renewable energy capacity:

• 3.2 GW by FY29
• 10 GW by FY32

This substantial increase in renewable capacity underscores CESC's commitment to clean energy and aligns with India's broader goals for sustainable power generation.

Massive Capital Expenditure Plans

To fuel its growth strategy, CESC has earmarked a significant capital expenditure of Rs 32,000 crore. This investment will be distributed across three key areas:

1. Distribution network enhancement
2. Renewable energy projects
3. Solar manufacturing ecosystem

Solar Manufacturing Ecosystem

CESC plans to establish a 3GW solar cell and module manufacturing ecosystem by 2027. This initiative aims to vertically integrate its operations, potentially capitalizing on the growing demand for solar energy components and supporting India's push for domestic manufacturing in the renewable sector.

Distribution Expansion and Privatization Opportunities

CESC is eyeing expansion opportunities in power distribution, particularly in Uttar Pradesh's privatization initiatives. This strategic move could potentially expand the company's consumer base and revenue streams.

Financial Performance

Let's look at CESC's recent financial performance:

Despite a slight dip in net profit and EPS, CESC has shown growth in revenue and EBITDA.

Cash Flow and Investments

The company's cash flow statement reveals:

• Capital Expenditure: Rs 1,863.2 crore in FY2025, up 141.60% from FY2024
• Net Cash Flow: Rs 905.8 crore in FY2025, an increase from Rs 146.2 crore in FY2024

These figures indicate CESC's investment in its future while maintaining positive cash flow.

Conclusion

CESC's Growth Vision 2030 presents a strategy for the company's expansion, focusing on renewable energy and distribution network enhancement. The planned investments in solar manufacturing and potential distribution privatization opportunities could provide CESC with advantages in the evolving Indian power sector.

However, while the company's revenue and EBITDA have shown growth, there has been a slight decline in net profit. The success of CESC's plans will depend on efficient execution of its strategy and market conditions in the renewable energy sector.

As CESC moves forward with its growth initiatives, stakeholders will be watching how these investments translate into long-term profitability and market position in the Indian power industry.