CESC Limited has received a significant tax determination order from the West Bengal government, marking a notable regulatory development for the power utility company. The order pertains to tax obligations for the financial year 2021-22.

Tax Order Details

The regulatory intimation reveals that CESC Limited has received an order of determination of tax, interest and penalty under sub-section (9) of section 73 of the CGST/WBGST Act, 2017. The order was issued by the Government of West Bengal, Office of the Special Commissioner, Deputy Commissioner of State Tax, Bureau of Investigation (South Bengal), Kolkata-700015.

Company's Response Strategy

CESC Limited has outlined its response plan to address the tax determination order. The company intends to file an appeal before the Appellate Authority, challenging the aggregate demand raised in the order. This decision is based on the merits of the matter, prevailing law, and advice from legal counsel.

The company has expressed confidence in achieving favorable orders from the appellate authorities. This suggests that CESC Limited believes it has strong grounds to contest the tax determination and expects a positive outcome through the appellate process.

Regulatory Compliance

The intimation was made pursuant to Regulation 30 of the Securities and Exchange Board of India (Listing Obligations and Disclosure Requirements) Regulations, 2015. This regulation requires listed companies to disclose material events and information that could impact investor decisions.

CESC Limited has fulfilled its disclosure obligations by informing both the National Stock Exchange of India Limited and BSE Limited about this development. The company has also made this information available on its official website at www.cesc.co.in , ensuring transparency for all stakeholders.

Financial Impact Assessment

The order represents a substantial financial exposure of ₹9.28 crores for CESC Limited. However, the company's decision to appeal the order indicates its belief that the demand may not be justified. The final financial impact will depend on the outcome of the appellate proceedings and any subsequent legal challenges.

The company has indicated that it will dispute the aggregate demand raised in the order, suggesting that it may seek either a complete reversal or a significant reduction in the assessed amount through the appellate process.

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.