BSES is planning to make an entry into the power transmission business. This follows the government's decision to throw open all segments of power business - generation, transmission and distribution to the private sector.
BSES holds an exclusive license to distribute power in Mumbai's northern suburbs, which is valid upto August 2011. The company has a 500 MW power plant and has bagged rights to distribute power in three circles in Orissa.
BSES plans to have a presence in all the three segments of the power business. The company currently has a generation capacity of 500 MW and is planning to set up another plant with a capacity of 495 MW, in Maharashtra. It distributes power in parts of Mumbai and has bagged rights for another three regions in Orissa. The management has stated its willingness to acquire power units apart from going in for green field ventures. With its proposed entry into transmission of power, BSES has become the first company in India to have a presence in all three segments of the power business.
The stock is rated as a 'BUY' mainly on account of the aggressive nature of the management. The move to delink license returns from the interest rate has also prompted the analysts to put out a 'BUY' rating for the stock. With BSES being awarded three power distribution contracts in Orissa, the growth prospects have greatly improved
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