The West Bengal Electricity Commission has put a spoke in the spinoff plans of CESC Ltd.
The detailed order of the Commission is dated 16 Feb, 2018 and can be downloaded from here.
As per the order:
“The above petition of CESC limited is not in line and is far from the provisions under section 17(3) of the Electricity Act, 2003 and regulation 5.11.3 of the West Bengal Electricity Regulatory Commission (Licensing and Conditions of License) Regulations,2013 which spell that CESC Limited is required to submit petition seeking prior approval of the Commission for the above arrangement.
The instant petition does not meet the Criteria of the Act and the regulations made thereunder and as such cannot be admitted and thus rejected.”
The surprising part is that CESC did not inform the exchanges about this very material order and kept the investors in the dark.