CESC looks for partners to pick stake in Nigerian power firms

KOLKATA: RPG Group company CESC is in talks with several companies to jointly pick stake in Nigerian power distribution firms that are up for divestment. "A couple of Nigerian power sector companies are up for divestment. We are in talks with some interested acquirers to form a consortium ," managing director Sumantra Banerjee said, without disclosing the name of the possible partners.

The Nigerian government wants to sell 51% stake in four thermal generation plants, three hydel power plants and 11 distribution companies, following the unbundling of state-owned Power Holding Company of Nigeria (PHCN). "Our involvement will be limited to providing technical expertise in running these power distribution companies. We may also end up taking small stakes in these companies," he said.

Banerjee, however, clarified that CESC was not keen on buying stake in any of the Nigerian firms as a separate entity, and intended to be the technical partner for the consortium that may buy majority stake in those entities. "We were approached by a few companies to join them as a technology and support provider to run and manage a power unit or distribution company," Banerjee said. If the consortium buys stake, it will mark CESC foray into the power sector overseas. Nigeria has an installed generation capacity of 8,644 mw, of which 6,905 mw is owned by PHCN.