CESC Unit Signs Wind Farm Consultancy Deal for 250 MW Project in Karnataka

CESC 's subsidiary Purvah Green Power Private Limited has issued a binding letter of intent to Klasscorp Solutions Private Ltd for consultancy services related to a 250 MW wind farm project in Karnataka, marking the company's expansion into renewable energy.

Project Details

The consultancy engagement focuses on a substantial wind farm development at Bijapur CTU in Karnataka state. Purvah Green Power, a subsidiary of CESC Limited, has formalized the arrangement through a binding letter of intent for comprehensive project support services.

Parameter	Details
Project Capacity	250 MW
Location	Bijapur CTU, Karnataka
CESC Subsidiary	Purvah Green Power Private Limited
Service Provider	Klasscorp Solutions Private Ltd
Engagement Type	Consultancy Services
Agreement Status	Binding Letter of Intent
Validity Period	1 year from execution date

Consultancy Scope

The letter of intent covers various consultancy services for land acquisition related to setting up the wind farm project. Klasscorp Solutions, identified as a domestic entity, will provide comprehensive support services for the project development and execution phases.

The agreement structure includes provisions for signing definitive agreements, with the LOI remaining valid for one year from the execution date or until definitive agreements are signed, whichever occurs earlier.

Strategic Significance

This binding letter of intent represents CESC's strategic approach to renewable energy development through specialized consultancy partnerships. The 250 MW capacity indicates a substantial investment in wind energy infrastructure, positioning the company to capitalize on Karnataka's favorable wind energy potential.

The company has confirmed that promoter/promoter group/group companies of Purvah have no interest in Klasscorp, ensuring this is not a related party transaction. This transparent approach demonstrates CESC's commitment to proper corporate governance in its renewable energy expansion.

Wind Energy Expansion

The Karnataka wind farm project aligns with India's renewable energy objectives and CESC's diversification strategy. The Bijapur CTU location in Karnataka offers strategic advantages for wind energy development, supported by the state's established renewable energy infrastructure and policy frameworks.

This consultancy agreement marks an important step in CESC's renewable energy journey, demonstrating the company's systematic approach to clean energy infrastructure development through professional partnerships and strategic planning.

1 Day	5 Days	1 Month	6 Months	1 Year	5 Years
+1.97%	-0.61%	-1.37%	+4.70%	-9.59%	+191.20%

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.

Parameter	Details
Issuing Authority	Government of West Bengal, Office of the Special Commissioner
Order Type	Tax, Interest and Penalty Determination
Legal Provision	Sub-section (9) of Section 73, CGST/WBGST Act, 2017
Financial Year	2021-22
Total Amount	₹9,28,48,030.00

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.