CESC Ltd Management Discussions

_Annexure ‘A to the Boards Report_

CESC Limited (‘CESC or ‘the Company) is a flagship company of the RP-Sanjiv Goenka Group (the ‘Group). It is an integrated power utility engaged in the generation and distribution of electricity across 567 square kilometres of its licensed area — Kolkata, Howrah, Hooghly, North and South 24 Parganas in West Bengal — supplying safe, cost-e_ective and reliable electricity to its 3.7 Million customers. The Company, through its subsidiaries, also has a portfolio of independent power generation projects and distribution ventures in other parts of the country.

This chapter presents an overview of the macroeconomic environment as well as the operational and financial performance of CESC. It also discusses important initiatives taken by the Company and its subsidiaries during the year to achieve its growth and performance objectives.

ECONOMIC OVERVIEW

Global Energy Scenario

Global energy markets continued to be stable during the year, with the World Banks energy price index¹ moderating to 101.5 in 2024, compared to 107.0 in 2023. This was a significant improvement over the heightened volatility in the immediate aftermath of the Russia-Ukraine conflict in 2022 — when the index had jumped to 152.6.

While the geopolitical risks emanating from the conflicts in Ukraine and the Middle East continue to pose challenges, the bigger source of uncertainty today is the tariff policies announced by the US government, and its impact on trade and growth. An anticipated decline in global growth due to this, coupled with adequate oil supply is expected to result in softer global fuel prices. According to the World Banks latest Commodity Markets Outlook released on April 29, 2025, the energy price index is expected to decline by 17.5% from 101.5 in 2024 to 83.8 in 2025, and further to 78.9 in 2026.

Global energy supply is witnessing a structural shift towards renewable technologies. This transition has gathered considerable momentum in the last few years, driven by supportive policies as well as technology advancements, large capacities and lower costs — notably for solar PV and batteries. Preserving this momentum in a world with lower fuel prices might pose a short-term challenge, but the overall direction is clear given the ongoing changes in consumer preferences and policy commitment to green technologies. The fact that this not limited to advanced economies — with large emerging economies such as China and India taking significant strides in implementing green projects — adds further strength to this trend.

According to the World Energy Outlook 2024 released by the IEA in October 2024, total primary energy demand under the ‘Stated Policies Scenario (STEPS)² will grow by 80 exajoules³ (EJ) — from 642 EJ in 2023 to 722 EJ in 2050 (see Chart A) — at a compound annual growth rate (CAGR) of 0.4%. Advanced economies⁴ will see their demand come down from 203 EJ to 177 EJ during the same period — resulting in a decline in their share of world energy demand to 25% by 2050.

A considerable part of the rise in global energy demand between 2023 and 2050 will come from India. Indias energy demand is projected to increase by 25 EJ — at a

CAGR of 1.6% — from 45 EJ in 2023 to 71 EJ in 2050 (see Chart B). With Chinas energy demand at 162 EJ in 2050, these two countries alone will account for about one-third of the global energy demand in 2050. Overall, China, the US and India will continue to be the top three consumers of energy in the world in 2050, with their shares being 22.4%, 10.8% and 9.8%, respectively.

In terms of energy sources, fossil fuels — coal, oil and gas — will continue to be dominant, though their share in global energy mix will come down considerably from 79% in 2023 to 58% in 2050 (see Chart C). This is primarily due to renewable technologies, which will grow from 78 EJ in 2023 to 241 EJ in 2050. Notably, renewables will grow more than twice the overall increase in demand during the period, replacing demand from coal and oil-based energy sources in the process. As a result, share of renewables will increase disproportionately from 12% in 2023 to 33% in 2050.

Another important facet of this change is the rise in electricity demand. As noted above, this is aided by change in consumer preferences, for instance growth of electric vehicles, as well as better project economics of clean energy systems, including solar PV modules and batteries. Under the Stated Policies Scenario, electricity generation is expected to grow at a CAGR of 2.5% — over five times the growth in total energy demand — from 29,863 terawatt hour (TWh) in 2023 to 58,352 TWh in 2050. It is also worth noting that under scenarios that assume more aggressive policy action⁵ by governments to achieve climate goals, the shift towards electricity will be even more decisive.

This increase in electricity generation between 2023 and 2050 will also have a significant implication on the fuel mix. As shown in Chart D, share of fossil fuels in electricity generation is expected to come down from 61% in 2023 to 19% by 2050. In contrast, renewable sources — solar, wind, hydro and modern bioenergy — will become the dominant source of power, accounting for 73% of the total power generation by 2050.

Indias Power Scenario

Electricity demand in India continues to reflect stable growth. During the year, demand increased by 68Billion units (BU) — or by 4.2% — from 1,626 BU in FY 2023-24 to 1,694 BU in FY 2024-25. Chart E presents the data for last five years. Equally important, most of this demand was met by the system, with a shortfall limited to 1.6 BU or about 0.1% of the total demand in FY 2024-25 versus a deficit of 0.3% in the previous year.

Source : Central Electricity Authority

Power generation capacity also increased, with the addition of 33.2 GW in FY 2024-25 — reflecting a 7.5% growth over last year. This increase in capacity was led by renewable sources (includes Hydro), which accounted for 89% of this increase — growing from 191 GW in FY 2023-24 to 220 GW in FY 2024-25. As a result, share of renewable power grew to 46.3% by the end of FY 2024-25. Total generation capacity in India stood at 475 GW at the end of 2024-25. Table 1 gives the details.

Table 1: Power Generation Capacity in India: FY 2024-25, By Fuel Source

Fuel	MW	% Share	Growth (%)
Coal & Lignite	2,21,813	46.7%	1.9%
Gas	24,533	5.2%	-2.0%
Diesel	589	0.1%	0.0%
Thermal	2,46,935	52.0%	1.5%
Nuclear	8,180	1.7%	0.0%
Hydro	47,728	10.0%	1.7%
Other Renewables	1,72,369	36.3%	20.0%
Total	4,75,212	100.0%	7.5%

Source: Central Electricity Authority

As shown in Table 2, the peak demand for power in FY 2024-25 was 250 GW, up from 243 GW in FY 2023-24. Despite this increase, the demand-supply situation remained balanced with the peak power supply meeting the demand at the all-India level.

Table 2: Power Demand and Deficit: FY 2024-25

Region	Peak	Peak Met	Deficit	Deficit
	Demand	(MW)		%
	(MW)
Northern	91,592	90,747	845	0.9%
Western	80,861	80,523	338	0.4%
Southern	69,938	69,934	4	0.0%
Eastern	31,488	31,399	89	0.3%
North-Eastern	3,959	3,914	45	1.1%
All India	2,49,856	2,49,854	2	0.0%

Source: Central Electricity Authority

However, marginal deficits were observed, notably in the North and North-Eastern regions. This was due to unsatisfactory situations in a few areas: Jammu and Kashmir (12.4%) in the northern region; Arunachal Pradesh (12.4%) in the north-eastern region. Other than these, no state or union territory had a peak power deficit exceeding 5% in FY 2024-25.

Macroeconomic Outlook

Global economy reflected relative stability in 2024 despite the geopolitical risks emanating from the wars in Ukraine and the Middle East. While the growth rates saw a marginal deceleration, inflation continued to moderate towards its targeted levels. According to the IMF, world output grew at 3.3% in 2024, compared to 3.5% in 2023. This deceleration in growth was on account of lacklustre performance of Emerging Market and Developing Economies. The Advanced Economies, in contrast, recorded marginally better growth.

India also witnessed a decline in performance during the year. According to the Second Advance Estimates released by the National Statistical Office (NSO) in February 2025, Indias Gross Domestic Product (GDP) grew at 6.5% in FY 2024-25, compared to 9.2% in FY 2023-24. Even as the Services sector — which accounts for the largest share in Indias economy — saw lower growth during the year, what really drove this decline was poor industrial activity, which came down from 10.8% in FY 2023-24 to 5.6% in FY 2024-25. In contrast, Agriculture recorded a stronger performance compared to last year.

With balanced geopolitical risks and broadly accommodative financial conditions, the outlook for global growth was stable as the year closed. But that has changed with new tariff measures and overall trade policy direction of the United States. This has introduced significant uncertainty and is likely to have a sizeable adverse impact on trade flows, investments and output.

Taking this into account, the IMF, in its latest update released in April 2025, has projected a much lower growth of 2.8% in 2025 — compared to its forecast of a 3.3% growth in its January 2025 assessment.

To be sure, headwinds from global trade disruptions pose downside risks for the Indian economy, particularly on merchandise exports directly impacted by the tariffs. But services exports, and indeed the entire services sector, is expected to remain resilient. At the same time, the fundamentals of the economy, particularly when it comes to domestic demand, remain strong — with bright prospects of the agriculture sector, uptick in urban discretionary spend and governments thrust on infrastructure. In its latest Monetary Policy Report released in April 2025, the RBI pegged Indias GDP growth in 2025-26 at 6.5%, considering these factors.

KEY HIGHLIGHTS

CESCs system demand grew at 4.6% during the year, from 11,775 Million units (MU) in 2023-24 to 12,318 MU in 2024-25. Chart F provides quarterly data for FY 2023-24 and FY 2024-25. It shows that demand grew in each of the four quarters, with growth being highest in Q1 (Apr-Jun) FY 2024-25.

Ensuring uninterrupted supply of electricity, while maintaining high service levels continues to be the overarching objective at CESC. In this respect, focus was on unlocking value through productivity improvements as well as optimising OPEX and CAPEX. This is reflected in initiatives to standardise processes, drive operational efficiencies and utilising AI-ML and advanced analytics to support real-time decision making in Generation as well as measures to optimise resource use in Distribution. Significant initiatives were implemented to upgrade consumer experience and improve revenue recovery. These include implementation of cloud-based IVR, use of Generative AI in social media response systems, and introduction of a one-of-its-kind rewards programme to promote digital engagement and self-service behaviour. These are covered in greater detail in the sections on ‘Generation, ‘Distribution and ‘Customer Service.

As a part of its strategy for growth, CESC took concrete steps during the year to mark its presence in the renewables energy (RE) business with a planned capacity of 3.2 GW by FY 2028-29 through a mix of solar, wind and hybrid projects. Further details are provided in the section on ‘Renewable Energy. In another significant development in FY 2024-25, the Company completed the acquisition of Chandigarh Power Distribution Limited (CPDL), the power supply licensee of the Union Territory of Chandigarh, which currently serves around 2.4 Lakh customers and has an annual sales of about 1,700 MU. This is discussed in the section on ‘Distribution Ventures.

CESC reported creditable results for FY 2024-25. Total income (including other income) of CESC as a standalone entity grew by 11.9% from 8,729 Crore in FY 2023-24 to 9,765 Crore in FY 2024-25. Total expenses during the year increased by 5.8% from 9,303 Crore in FY 2023-24 to 9,838 Crore in FY 2024-25. As a result, standalone profit before taxes (PBT), after incorporating regulatory income, improved by 15.2% from 922 Crore in FY 2023-24 to 1,062 Crore in FY 2024-25. Standalone profit after taxes (PAT) stood at 800 Crore in FY 2024-25, compared to 775 Crore in FY 2023-24. Further details are available in the section on ‘Financial Results.

BUSINESS PERFORMANCE

CESCs businesses comprise the Kolkata operations as well as other generation and distribution ventures:

8 Kolkata Operations: Distribution of electricity, with its own generation facilities, across the licensed area in Kolkata, Howrah, Hooghly, North and South 24 Parganas, West Bengal. Other than the 600 MW plant at Haldia, which is under its 100% subsidiary Haldia Energy Limited (HEL), the operations are directly under CESC Limited.

8 GenerationProjects:Thermalandrenewablesprojects owned and operated by various subsidiaries of CESC (excluding HEL). At the end of FY 2024-25, cumulative generation capacity of these projects stood at over 650 MW, whereas 1200 MW of renewable projects are under implementation in Rajasthan, Madhya Pradesh and Andhra Pradesh through its subsidiary.

8 Distribution Ventures: Distribution licence for Greater Noida (Uttar Pradesh) and the newly acquired licensee for Union Territory of Chandigarh; three distribution franchisees (DFs) in Kota, Bharatpur and Bikaner in Rajasthan; and the DF in Malegaon, Maharashtra. These are operated by CESCs subsidiaries.

KOLKATA OPERATIONS Generation

CESC operates a 750 MW generating station at Budge Budge (BBGS) and a 135 MW generating station at Garden Reach (Southern). In addition, Haldia Energy Limited (HEL), a 100% subsidiary of the Company, operates a 600 MW generating station at Haldia. HEL has a long-term power purchase agreement (PPA) for selling its power to CESC.

During the year, total generation from these plants was 10,719 Million units (MU), out of which 10,279 MU or 95.9% of the total generation in FY 2024-25 came from Budge Budge and Haldia.

Table 3: Performance of Key Generating Stations

Plant	Capacity	FY 2024-25			FY 2023-24
	(MW)	PAF%	PLF%	Gen	PAF%	PLF%	Gen
				(MU)			(MU)
Budge	3 x 250	96.2	89.5	5,489	97.0	88.4	5,735
Budge (BBGS), CESC
Haldia,	2 x 300	97.0	92.9	4,790	95.8	88.0	4,564
HEL

PAF: Plant Availability Factor. PLF: Plant Load Factor.

Table 3 presents data on performance of the two key generating stations — Budge Budge (BBGS) and Haldia (HEL). Both stations are certified in respect of Quality Management Systems (ISO 9001), Environmental Management Systems (ISO 14001), Occupational Health

& Safety Management Systems (ISO 45001), Energy Management Systems (ISO 50001), Information Security Management Systems (ISO 27001) and Business Continuity Management System (ISO 22301).

CESC has been at the forefront of using best-in-class technology and digital interventions to effect improvements in several key areas such as operations, maintenance, safety and asset management. Key projects undertaken in FY 2024-25 are presented in Box 1.

CESCs focus on innovation can also be seen in the two patents it secured in FY 2024-25. These relate to (i) robot car assembly for PF coal feed pipe inspection, and (ii) a system for predicting auxiliary power consumption in a power plant. During the year, its earlier patent on use bottom ash in concrete production by substituting natural sand was recognised as one of the 80 best innovations addressing SDG 15 "Life On Land" and featured in the "UN-75-2020 and Beyond" compendium published by The Patent Office, IP India, commemorating the occasion.

Over the years, CESC has excelled in environment and sustainability. Both Budge Budge and Haldia plants continue to achieve 100% utilisation of ash in an environment friendly manner and optimise their water usage by reducing consumption, reusing and recycling wherever possible. BBGS is a zero liquid discharge (ZLD) plant, whereas approximately 225 acres of land (75% of total plant area) at HEL is covered under rainwater harvesting — with 800,000 cubic metres of rainwater being utilised for plant operations. In a significant development during the year, BBGS Unit-3 was retrofitted with low NOx burners to bring down the NOx level in the flue gas emissions within a record time of two weeks of outage.

In FY 2024-25, around 5,000 and 1,445 saplings were planted at Haldia and Budge Budge respectively, taking the total tree plantation at both the plants to well over 1 Lakh each. HEL has the distinction of having over 30% of its plant area under green cover. During the year, it launched a project to producing bio-fertiliser from water hyacinth — an invasive aquatic plant — to reduce its environmental impact while utilising its nutrient-dense characteristics.

HEL is a member of India Business and Biodiversity Initiative (IBBI). The CII-ITC Centre of Excellence for Sustainable Development conducted a study at HEL as part of the Task Force on Nature-related Financial Disclosures (TNFD) to evaluate, disclose, and manage the risks and impacts related to nature and biodiversity associated with its plant operations.

CESC won several awards in FY 2024-25 that underscore its achievements in the areas of environment and sustainability.

BBGS bagged (i) 18^th ICC Environment Excellence Awards 2024 (Platinum Award) (ii) 17^th CII Energy Conservation Awards (ENCON) FY 2023-24 (iii) CEE 2^nd National Power-Gen Leadership Awards 2024 (iv) The GEEF Global Sustainability Award 2024 (Platinum Award) (v) 3^rd National Power - Gen Water Award 2025 by Council of Enviro Excellence (CEE). HEL was recognised (i) Winner of the Water Transversality Global Awards 2024 under Rainwater Harvesting and Ground Water Management category, which was organised and supported by United Nations ESCAP, Ministry of Jal Shakti, GOI, and India Water Foundation (ii) Confederation of Indian Industry (CII) and ITC Excellence in Biodiversity Conservation Award for 2024, and (iii) Green India Awards from Indian Exhibition Services, New Delhi.

DISTRIBUTION

CESCs distribution infrastructure serves its 3.7 Million customers in Kolkata, Howrah, Hooghly, North and South

24 Parganas in the state of West Bengal. The demand for power is quite variable in its licensed area, with the Company having registered a peak demand more than 2700 MW and a lean demand lower than 500 MW in recent years.

During periods of high demand, CESC also imports power to complement its own generation (including from HEL). Conversely, it exports surplus power, when possible. Banking of power is also done with other licensees to facilitate availability of power during periods of high demand. In FY 2024-25, the peak power demand increased to 2728 MW, compared to 2606 MW in the previous year. Total energy requirement grew at 4.6% from 11,775 MU in FY 2023-24 to 12,318 MU in FY 2024-25. About 80% of this requirement was met by CESCs own generation, including HEL.

During the year, CESC executed two Power Purchase Agreements (PPAs) with solar and solar-wind hybrid developers to procure 600 MW of green power. These PPAs would help CESC to meet its Renewable Power Obligation (RPO) targets and at the same time meet the increasing demand for electricity in its licensed area. In other sustainability initiatives, two substation buildings were converted to certified green spaces in FY 2024-25, taking the overall tally of green establishments to twenty-one.

CESC undertakes continuous upgradation of its distribution infrastructure to maintain the quality and reliability of supply as well as to reduce downtime, overloads and distribution losses. Over the years, CESC has achieved high degree of automation through its investments in technology and equipment, resulting in faster restoration in case of supply interruptions. Given the rise of technology-based solutions, one area which becomes very important is cybersecurity. CESC has a comprehensive Cyber Crisis Management Plan (CCMP) and is compliant with ISO 27001.

CESC is at the forefront of deploying advanced technology and innovations to provide better services to its customers. Some of the key initiatives in FY 2024-25 were:

8 Installation of RF-mesh Smart meters and 4G Cellular Smart meters is an ongoing effort to facilitate remote billing, outage management, credit control and pinpointing thefts in high-loss areas. Proactive deployment of 4G Cellular Smart meters is underway for replacement of old AMR meters operating on 2G to prevent technology obsolescence ensuring business continuity. Around 9,740 smart meters were installed in FY 2024-25.

8 The Company had earlier engaged International Finance Corporation (IFC) to conduct a techno-commercial feasibility study for deploying grid-connected Battery Energy Storage System (BESS) at different voltage levels for better network management. The Company is now contemplating installation of a grid-connected MW-scale BESS project at a strategic location.

8 Substantial capacity has been unlocked at existing stations by swap over and relocation of underloaded power transformers as well as augmentation of underrated cables. This will help in better asset utilisation, loss optimisation and enhancing power handling capacity of the system.

8 CESCs focus on innovation in distribution is also reflected in the three patents it received from the Government of India in FY 2024-25: (i) Compact distribution transformer to reduce footprint and enhance capacity of a distribution transformer, (ii) Transformer breather monitoring system to ensure a healthy and reliable transformer with high operational life and (iii) A system for Automation of Meter Inspection Activity for Complaint Management.

CUSTOMER SERVICE

CESC is on a transformative journey to reimagine service delivery and elevate customer experience through technology, innovation and empathy. Its initiatives during the year have been aimed at upgrading its customer service infrastructure to redefine access, augment digital engagement and promote self-service behaviour. Some of the key highlights are:

8 New Connections: In FY 2024-25, CESC added 96387 new connections, with an average turnaround time of 1-2 days. For premises with existing infrastructure, supply was typically activated within 24 hours of compliance and payment. To further simplify and digitise the process, app-based inspections for new meter applications were introduced on a pilot basis — . marking a step forward in field force automation.

8 Billing and Payment: CESC provides a broad suite of secure, easy-to-use digital payment modes, including debit/credit cards, net banking, mobile wallets, ECS, . NEFT/RTGS, Bharat QR, and UPI. A new facility — "e-NACH (Electronic National Automatic Clearing House)" — was introduced, enabling customers to set up automated monthly payments. By March 2025, digital channels accounted for approximately 85% of total bill payments, amounting to 93.6% of the total revenue collection.

8 Customer Experience: CESCs 24x7 Centralised Call Centre serves as the primary hub for resolving customer queries and complaints, whereas the Key Account Management (KAM) programme provides dedicated, personalised service for large consumers. It has also expanded the scope of digital channels that strive to empower consumers through DIY (Do- It-Yourself) solutions. In FY 2024-25, over 80% of customer interactions were handled through digital channels — including IVR, Aastha voice bot, web chat, WhatsApp, and multilingual bots — up from about 76% in the previous year.

8 Supply Reliability: To maintain uninterrupted power supply, CESC operates a 24x7 Control Room, backed by GPS-enabled, radio-linked mobile service vans strategically positioned for rapid response and restoration. Effectiveness of the system is further enhanced with the field teams using body-worn cameras with two-way audio-video capability for remote monitoring.

8 Complaint Management: CESC continues to strengthen complaint resolution through improved processes and technologies. The implementation of the Corrective Action and Preventive Action (CAPA) framework, alongside Robotic Process Automation (RPA)-based process optimisation and SOP based unified customer communication, has led to a reduction in supply and commercial complaints. Proactive communication has been introduced at almost every touch point of the customer journey as part of its changing mindset from reactive to proactive engagement with consumers.

8 Promotion of Sustainability: As part of CESCs sustainability efforts and demand side management in summer months, targeted communication campaigns have been piloted to encourage efficient and responsible electricity usage by consumers. At the same time, its ‘Green Energy Program serves as a strategic enabler for businesses aiming to meet their sustainability targets. Under this programme, CESC facilitates hassle-free procurement and supply of green energy to these customers, thereby promoting its adoption and helping them transition to cleaner power sources. Currently, 43 consumers are enrolled in the programme, contributing about 92.1 MU of green energy consumption in FY 2024-25.

8 Digital and Social Media: CESC has strong digital presence through its own assets including website and Mobile App as well as key social media platforms

— Facebook, Twitter, LinkedIn, Instagram, and YouTube. It is now the most followed Indian utility brand on Facebook with 3.84 Lakh followers. This allows it to promote digital services as well as safe and sustainable consumer behaviour. More importantly, it has contributed to quick and effective engagement with customers, utilising the power of Generative AI deployed on key platforms such as Facebook and X. In FY 2024-25, almost all customer queries on social media were answered within 5 minutes, with an average response time of just 1 minute. Other significant initiatives in the areas of digital engagement and innovation are provided in Box 2.

Box 2: Digital Engagement and Innovation — Key Initiatives

• Customer Loyalty Programme: On September 20, 2024, CESC launched its maiden digital rewards programme called ‘E-Points with the objective of promoting digital behaviour. Through this programme, customers can now earn reward points by adopting digital practices such as online bill payments and opting for paperless e-bills. These points can be redeemed for goods and services from several renowned brands spanning healthcare, entertainment, dining, beauty, travel and electronics, at no additional cost to the Company.

• Cloud-Based Interactive Voice Response (IVR) System: CESC deployed a cloud-based IVR system during the year to strengthen its call centre efficiency and responsiveness. This has significantly expanded call handling capacity, and combined with proactive resource management, ensures uninterrupted support services during the high-demand periods, including summer months and extreme weather events.

• Mobile Application: On October 3, 2024, CESC launched a redesigned mobile app featuring an intuitive, user-friendly interface suited for all age groups. The app offers both dark and light modes for better accessibility and includes 32 features such as new connection applications, push notifications, and a one-tap supply management docket. With 2.7 Lakh downloads immediately after its release, the app stands as a testament to CESCs commitment to innovation and seamless customer experience.

• Voice of Customer and Analytics: At the heart of CESCs digital transformation is its dynamic e-Voice of Customer (e-VoC) programme. Leveraging real time analytics, it captures customer sentiments, preferences, and concerns to drive service enhancements. Continuous outreach and feedback analysis ensure swift action on pain points. These insights have led to a noticeable improvement in Net Promoter Scores, reflecting growing customer satisfaction and trust.

• Brand Campaigns: The Company executed several campaigns aligning with core values of the Group. Notable campaigns in FY 2024-25 include: #APPnarbondhu to promote the newly revamped mobile app; #SmartChoicesWithCESC emphasising online services; #LiveFreeBreatheFree promoting sustainability; #LightsCameraKolkata fostering connections between Kolkata and CESC; #HeroesofCESC spotlighting our dedicated workmen; #CESCcares showcasing CSR initiatives; #CustomerFirst offering safety tips; #LeadingWithLight featuring employee testimonials, and #PoweredByCESC highlighting customer testimonials. Its campaigns reached more than 1.1 Crore people in FY 2024-25.

CESCs commitment to digital transformation, customer experience, and operational excellence have been recognised through several prestigious awards: (i) Best Performing Power Distribution Utility by Central Board of Irrigation and Power (CBIP), (ii) Winner – Excellence in Customer Service (Distribution Sector) at the 6^th Annual ASSOCHAM Excellence Awards 2025, (iii) Best Performing DISCOM – City Base and Outstanding Achievement in Consumer Awareness at the IPPAI Power Awards, (iv) Best Innovation Leveraging Generative AI/ML at the AWS AI Conclave Awards, Bengaluru, (v) SKOCH Digital Transformation Award 2025 in the category of Digital Customer Experience, and (vi) ‘Masters of Customer Experience at the CX Transformation Conclave 2024 for the successful implementation of a state-of-the-art Cloud IVR.

SAFETY AND HEALTH

CESC is committed to maintaining high standards of industrial safety across its operations. The Company has a safety vision, principles, pledge and policy, including a policy on use of personal protective equipment. All key thermal generating stations, including its subsidiary companies — BBGS, Southern, Haldia and Dhariwal — are ISO 45001 certified for occupational health and safety management systems. During the year, Southern received the ‘Gold award at the 6^th ICC National Occupational Health & Safety Awards 2024.

The Safety Department has been instrumental in training the workers, implementing safe work procedures and monitoring unsafe situations. Besides, officers have undergone safety-related training by institutions of national and international repute like DuPont, Bureau Veritas and Jadavpur University. Job site audits, safety observation, safety communication meetings, safety workshops, hand holding exercises at sites and observation of ‘Safety Day are other activities that have contributed to promoting a safety culture in the organisation.

CESC has a structured communication system for coverage of its safety related initiatives, which includes its web-based monthly newsletter ‘Safety Spotlight. To educate customers on electrical and fire safety, the Company sends safety mailers, organises seminars, and showcases decorated safety tableaus in its licensed area along with distribution of safety leaflets.

CESC has a strong focus on health and well-being of its employees. It operates 26 well-equipped dispensaries across the organisation with doctors and pharmacists. Best-in-class medical facilities are also available to the employees through tie-ups with major super-speciality hospitals, nursing homes and diagnostic clinics. As a part of its preventive health initiatives, it conducts health checkup for its employees, hosts awareness programmes and publishes health bulletins at regular intervals. CESC also provides a family health insurance scheme for the benefit of its employees and their family members as well as for its retired employees.

GENERATION PROJECTS

Apart from plants catering to Kolkata operations, CESC has built independent generation capacities to benefit from the opportunities in the sector and build capabilities in the renewable energy space. This includes two thermal power projects with a capacity of 600 MW and 40 MW, as well as a solar power project with a capacity of 18 MW DC.

As a part of its strategy for growth, CESC took concrete steps during the year to mark its presence in the renewables energy (RE) sector — with a planned renewable capacity of 3.2 GW by FY 2028-29 in Phase 1 and an overall capacity of 10 GW by the end of Phase 2. These projects will be carried out through its subsidiary Purvah Green Power Private Limited (Purvah Green) and its step-down subsidiaries. It has a platform ready for participation in bids for various formats invited by Renewable Energy Implementing Agencies (REIA) and distribution companies, including solar, wind, hybrid, firm and dispatchable renewable energy (FDRE) and Round the-Clock (RE-RTC). It also has a strong and experienced RE team in place to drive the business and achieve these targets.

Renewable energy projects cumulatively accounting for 1200 MW are currently under implementation. Further details of these projects are provided in the Renewables Energy section. At the end of FY 2024-25, Purvah Green had secured connectivity for about 4.08 GW in states such as Gujarat, Madhya Pradesh, Rajasthan, Andhra Pradesh and Karnataka that have high potential for wind and solar projects. Purvah Green has been recognised as the ‘Fastest Growing Utility-Scale Project Developer of the Year at Suryacon Hyderabad 2024 — acknowledging its rapid growth and commitment to renewable energy, particularly in the field of large-scale solar power projects.

Thermal

Chandrapur, Maharashtra: This is a 2x300 MW thermal power project implemented by Dhariwal Infrastructure Limited (DIL), a 100% subsidiary of CESC Limited. For power evacuation, the units are connected to the Maharashtra state grid as well as the central grid. This provides it the flexibility to sell power to customers from within and outside the state. DIL has Fuel Supply Agreements (FSAs) with South Eastern Coalfields Limited and Western Coalfields Limited.

For Unit-II, DIL has long-term Power Purchase Agreements (PPAs)forsupplyof100MWpowertoTamilNaduGeneration and Distribution Corporation Limited (TANGEDCO) and 171 MW power to the Noida Power Company Limited (NPCL)

Report

For Unit-I, DIL had a medium term PPA with Central Railway in Maharashtra for supply of 210 MW. In FY 2024-25, the overall PLF for DIL was 87.3%. Since the close of the financial year 2024-25, DIL has entered into 3 medium term PPAs with Adani Electricity Mumbai Limited, The Tata Power Company Limited and Noida Power Company Limited for supply of power aggregating to 225 MW.

DIL is certified in respect of Quality Management Systems (ISO 9001), Environmental Management Systems (ISO 14001), Occupational Health & Safety Management Systems (ISO 45001), Energy Management Systems (ISO 50001), Information Security Management Systems (ISO 27001) and Business Continuity Management System (ISO 22301).

DIL has excelled in meeting high environmental standards in its operations through continuous innovations and efforts. It has achieved 100% ash utilisation and has an outstanding record on health and safety. Being a zero liquid discharge (ZLD) plant, various initiatives for utilisation of waste water have been implemented, resulting in water consumption levels well below the national standards. It has also taken several measures to protect and enhance biodiversity. During the year, it carried out a study on carbon sequestration and flora biodiversity.

DIL ranked 4^th in PLF ranking of independent power producers and 14^th among all thermal power plants in FY 2024-25. During the year, it received several awards that underscore its performance and initiatives in the areas of environment and sustainability: (i) CEE 2^nd National Power-Gen Water Award 2024, (ii) Regulatory Compliance Awards 2024 in Environment Compliance-IPP, (iii) 2^nd National Power Gen Leadership Award-Digital Initiative Plant of the Year, (iv) National Energy Efficiency Award 2024 by Council of Enviro Excellence, (v) National Energy Efficiency Award 2024 by Council of Enviro Excellence for Digital Initiative.

Asansol, West Bengal: This is a 40 MW atmospheric fluidised bed combustion (AFBC) power plant using washery rejects and inferior grade coal (IGC) from the adjacent captive coal mine in Sarisatolli. The unit has been operational since July 2009. The power plant is owned by Crescent Power Limited, a CESC subsidiary, which operates in the merchant power market. In FY 2024-25, the plant generated 328 Million units (MU) of power with a PLF of 93.5%.

Renewable Energy

Ramanathapuram, Tamil Nadu: Commissioned in January 2016, this solar power project has been undertaken through Crescent Power Limited, a subsidiary of CESC. It has a capacity of 18 MW DC and the power generated in the project is being sold to the Tamil Nadu Generation and Distribution Corporation Limited under a long term energy purchase agreement. During FY 2024-25, it generated 26.6 MU of electricity.

New RE Projects (Rajasthan, Madhya Pradesh and Andhra Pradesh):

Purvah Green, a subsidiary of CESC, is currently implementing three renewable energy projects with a cumulative installed capacity of 1200 MW through its subsidiaries. These include: (i) 300 MW Solar project at Bhadla, Rajasthan, (ii) 450 MW Hybrid project comprising a 150 MW Solar unit and a 300 MW Wind unit, both of which are located in Mandsaur, Madhya Pradesh, and (iii) 450 MW Hybrid project comprising a 150 MW Solar unit at Bikaner, Rajasthan and a 300 MW Wind unit at Ananthapuram, Andhra Pradesh. The Company has already secured transmission connectivity from CTU for these projects.

DISTRIBUTION VENTURES

CESC has been active in the private distribution outside Kolkata since 1993 through the Noida Power Company Limited, its subsidiary that distributes power in Greater Noida, Uttar Pradesh. CESC also operates three distribution franchisees (DF) in Rajasthan and one in Maharashtra. Kota and Bharatpur became operational in 2016-17, Bikaner became operational in 2017-18 and Malegaon commenced operations in 2019-20. The latest addition to the Companys portfolio in this space is the distribution license for Chandigarh, which became effective in FY 2024-25.

The five operational distribution ventures of CESC, other than Kolkata operations and Chandigarh, collectively service around 8.5 Lakh consumers (8.1 Lakh in FY 2023-24) and accounted for electricity sales amounting to 6,898 Million units (MU) in FY 2024-25, up by 8.4% from 6,365 MU in FY 2023-24. The addition of Chandigarh operations to the Companys portfolio with effect from February 1, 2025 increases the effective customer base by about 2.4 Lakh and the annual electricity sale of approximately 1700 MU.

Greater Noida, Uttar Pradesh: Noida Power Company Limited (NPCL), a subsidiary company of CESC, started its operations in 1993-94 after it was granted distribution licence by the Government of Uttar Pradesh. The licensed area covers 335 square kilometres comprising a mix of industrial establishments as well as 118 fully electrified villages. Currently, around 7% of its 1,87,154 customers comprise business establishments.

NPCL completed 31 years of its operation in FY 2024-25. In this period, it has implemented state-of-the-art technology and processes to deliver safe and reliable electricity along with highly customer-centric services, setting industry benchmarks in the process. It has a fully integrated GIS and a 100% SCADA compliant network

In FY 2024-25, NPCLs peak load grew at 19% to 775 MW, compared to 652 MW in FY 2023-24. Sales grew at 15% from 3,136 MUs in FY 2023-24 to 3,598 MU during the year. As a mature and efficient distribution utility, NPCL maintained its distribution losses below 7.50% in FY 2024-25. Following prudent practices and proactive engagement with its customers, NPCL was able to maintain collections at more than 99% in FY 2024-25. The Companys digital collection ratio increased to 93% from 91% in the previous year.

NPCL achieved the highest A+ rating for the fourth consecutive year in the 13^th Annual Integrated Rating & Ranking of Power Distribution Utilities conducted by PFC Limited under the framework of Ministry of Power, Government of India, where it secured an impressive 3^rd rank, improving from 7^th Rank in previous year. It also secured highest ‘A+ rating in Consumer Service Rating of DISCOMs for FY 2023-24 conducted by REC Limited and issued by the Ministry of Power. Further, NPCL ranked 3^rd among 66 utilities across the nation in Combined Distribution Utilities Ranking (DUR) for FY 2023-24.

Apart from these, NPCL received several prestigious awards and recognitions in FY 2024-25 including three international awards from ICQC, QCFI and Greentech Foundation. Some of the key ones are CFO Excellence Award in digital transformation category, CSR Leadership Award, IPPAI – Best performing distribution utility and best utility in smart grid deployment and advance metering. Other accolades include 12^th Innovation with Impact Awards for Discoms under Quality of Supply & Customer Empowerment & Technology Adoption Category, 9^th ISGF Innovation Awards 2025 under category "Adoption of Artificial Intelligence, Machine Learning and Robotic Solutions", Global Greentech award for excellence in Safety Training category, and 9^th Annual HSE Excellence & ESG Global Awards 2024.

Chandigarh: During the year, CESC, through its wholly owned subsidiary Eminent Electricity Distribution Limited (EEDL), completed the acquisition of 100% equity shares of Chandigarh Power Distribution Limited (CPDL). As the sole distribution licensee for the Union Territory of Chandigarh, CDPL is responsible for supplying electricity to around 2.4 Lakh customers across 114 square kilometres of its license area, with an annual sales volume of close to 1700 MU.

The operations were taken over by the Company with effect from February 1, 2025. Since then, focus has been on ensuring a smooth transition. It is carrying out a survey of the license area to understand the distribution infrastructure and prepare a plan to modernise the network. It also interacted with consumers and user bodies to identify key issues and improve customer experience. The Company has already taken initial steps in this direction with introduction of a central call centre,

WhatsApp services and a website within the first 45 days of taking over operations.

Kota, Rajasthan: Kota Electricity Distribution Limited (KEDL), a wholly owned subsidiary of CESC, took over operations in Kota on September 1, 2016 after signing of Distribution Franchisee Agreement with the Jaipur Vidyut Vitran Nigam Limited (JVVNL).

In FY 2024-25, KEDL added 11,826 new customers. Despite reduction in ofitake from a large HT customer, total sales volume remained strong at 1290 MUs in FY 2024-25, compared to 1329 MU in the previous year. It restricted its distribution losses at 14.28% in FY 2024-25. Overall collection efficiency was close to 100% during the year.

Bharatpur, Rajasthan: Bharatpur Electricity Services Limited (BESL), a wholly owned subsidiary of CESC, took over the operations in Bharatpur on December 1, 2016 after the signing of Distribution Franchisee Agreement with JVVNL.

BESL added 3,361 consumers during the year and its electricity sales volume grew by about 6% from 295 MU in FY 2023-24 to 314 MU in FY 2024-25. With consistent loss reduction efforts, the Distribution losses came down from 10.16% in FY 2023-24 to 9.74% in FY 2024-25. Overall collection efficiency was around 100% during the year.

Bikaner, Rajasthan: Bikaner Electricity Supply Limited (BKESL), a wholly owned subsidiary of CESC, took over the operations in Bikaner in May 2017 after the signing of Distribution Franchisee Agreement with Jodhpur Vidyut Vitran Nigam Limited (JdVVNL).

In FY 2024-25, BKESL added 6,648 new consumers. Even with significant solar connected consumers with a 76.8 MW solar load, the Company registered an increase of 11% in sales volume from 775 MU in FY 2023-24 to 860 MU in FY 2024-25. Distribution losses came down from 12.47% in FY 2023-24 to 11.96% in FY 2024-25. Overall collection efficiency was around 100% during the year.

Malegaon, Maharashtra: Malegaon Power Supply Limited (MPSL), a wholly owned subsidiary of CESC, took over the operations in Malegaon on March 1, 2020 after signing a Distribution Franchisee Agreement with Maharashtra State Electricity Distribution Company Limited (MSEDCL). The distribution area covers the Malegaon Corporation Area spread across 57.6 square kilometres with around 1.27 Lakh Consumers. Approximately 81% of the demand comes from the power loom sector.

The Company added 3,853 new connections and replaced 7,658 metres during the year. It also stepped-up vigilance activities, while at the same time making significant efforts to improve collection efficiency. This resulted in considerable improvement in performance. MPSL registered sales of 836 MU in FY 2024-25, compared to 830 MU in the previous year and the focous on loss reduction will continue through greater vigilance and capital expenditure on building appropriate infrastructure. In FY 2024-25, MPSL conducted several consumer outreach programs across schools, societies and housing complexes, which were welcomed by all stakeholders and has uplifted the Companys overall image.

HUMAN RESOURCES _HR_

CESC is focused on leveraging best-in-class HR practices to create an environment that ensures growth, development and well-being of its employees. Accordingly, all HR strategies are formulated keeping employees at the core and supporting them to contribute to organisational growth. Processes are in place to receive feedback from employees and aligning the organisation with changing business needs. During the year, significant effort was made to review and align HR policies and processes with the needs of the business — moving towards greater adoption of digital platforms and making them people friendly. Special focus was also given on transparent employee communication through various channels and branding itself as an employer of choice through social media platforms.

The Company seeks to attract the best talent through its well-structured recruitment processes and engagement with premier engineering and management institutes. These processes were streamlined during the year to enhance objectivity and transparency, including structured assessment and pre-placement presentations. Further, onboarding processes were improved for better engagement.

Learning and Development (L&D) continues to be a cornerstone of CESCs HR strategy. It has established a robust framework for delivering training and learning interventions to equip employees with the skills needed to meet evolving business demands. Specialised programmes were organised during the year on themes such as Operational Efficiency Improvement, Business Analytics, and Artificial Intelligence to address technological and operational needs. A self-paced e-learning module was also introduced to enhance organisational awareness on POSH (Prevention of Sexual Harassment) compliance. During FY 2024-25, CESC conducted 455 training programmes — a blend of in-person classroom sessions and online modules — achieving a cumulative 7,827 man-days of training.

During the year, CESC launched ‘Power 100, a flagship leadership development initiative designed to build a strong pipeline of leaders within the organisation and ‘Power Talk, a platform to learn from industry and domain experts. To promote knowledge sharing and recognise contribution of in-house subject matter experts, it also launched the Internal Faculty Reward & Recognition Programme. These programmes reward initiative and performance — in line with its vision to establish itself as an ‘Employer of Choice.

Box 3: Asia Institute of Power Management (AIPM)

Asia Institute of Power Management (AIPM) is the ISO 9001 certified L&D arm of CESC. It is engaged in capacity building of power sector professionals since 2010. Over the years, AIPM has conducted tailor-made programmes supported by the rich expertise and experience of practicing professionals from CESC.

Its signature programmes include Efficiency Improvement in Power Distribution, Modern Metering Systems in Power Distribution Sector, Arresting Failure of Distribution Transformer, Power Cable Management, AT&C Loss Management, Electrical Safety in Power Distribution Sector, Business Economics of Electricity Sector, Advance Technology & Economics of Solar Energy Generation & Integration, Power Generation Business and Mining, Power Plant Performance Optimisation and Reliability Improvement, Advancement in Power Plant Chemistry and many more.

Since its inception, AIPM has trained 16,000 power professionals covering 46,000 training man-days.

During FY 2024-25, AIPM upskilled engineers and executives of power utilities like Eastern Regional Power Committee, Damodar Valley Corporation, Punjab State Power Corporation Limited, West Bengal Power Development Corporation as well as international client like Bhutan Power Corporation. A knowledge sharing session was also organised for Telangana State Southern Power Distribution Company where its leadership team visited different establishments of CESC to learn best practices.

CESC places strong focus on wellbeing and engagement of its workforce. Several initiatives are taken to improve working conditions and well-being of employees. It has effective, employee-friendly HR policies and processes that keep employee engagement high and enhance welfare. It also operates several reward and recognition programmes, including periodic public recognition forums in addition to on-the-spot acknowledgement. The Company also engages family members of the employees through various initiatives. Communication meetings are also regularly organised by the leadership team to encourage a culture of listening by addressing employee queries and generating free flow of ideas.

As on March 31, 2025, CESC had 5,688 employees on its payroll. Unions representing the employees continued to play a positive role in partnering with management to drive excellence in operations. CESC enjoyed industrial harmony in its operations during the year with no major incidents of service interruption due to industrial relations issues.

BUSINESS EXCELLENCE AND QUALITY _BEQ_

A strong quality culture has been an integral part of CESC. The ethos of customer centricity and operational excellence along with a strong commitment towards quality management discipline has established CESC as one of the most efficient power utilities in the country.

During the year, focus was on institutionalising continuous improvement through increased adoption of digital interventions as well as uniform deployment of quality practices such as Kaizen principles and monitoring Workplace Organisation practices following 5S discipline. Considerable progress was also made in promoting project management discipline for problem solving through adoption of the DMAIC methodology for problem identification and implementation of solution to ensure sustainable improvement in line with the need and expectations of the beneficiaries.

In FY 2024-25, all the nine teams that had earlier qualified at the State and National levels of Quality competitions organised by QCFI, participated at the international level and won the highest award of ‘Gold at the 49^th International Convention on Quality Control Circles organised by Sri

Lanka Association for the Advancement of Quality and Productivity (SLAAQP). Another set of 10 teams qualified for the international level scheduled later this year, after successful qualification at the State and National level contests organised by QCFI in the category of Allied Kaizen concepts.

Teams from CESC have been the winners of the prestigious ‘Par Excellence award at the 10^th National Conclave on 5S, organized by QCFI and second runner-up at the 37^th QC Circle Competition organised by Confederation of Indian Industry, West Bengal, which bears testimony to the robust quality management structure at the organisation.

INFORMATION TECHNOLOGY _IT_

CESC strives to continuously strengthen its IT infrastructure and application landscape to innovate and provide its growing customer base with best-in-class services as a power utility. This forms an integral part of the organisations ability to build a competitive edge and deliver on its strategic and performance objectives.

The IT infrastructure includes CESCNET, its captive optical fibre data network, which connects the Companys service establishments across the license area as well as data centre (DC) and disaster recovery (DR) sites for its IT application and systems. During the year, there was an increased focus on developing competencies in the areas of Artificial Intelligence, Machine Learning and Generative AI. Several automation-related projects were also launched to address the needs of the business (See Box 4).

Box 4: Process Automation and Analytics

Implementation of Robotic Process Automation (RPA) in consumer and operational processes has significantly improved operational efficiency, ensuring prompt and satisfactory resolutions to consumer concerns. Some of the key initiatives include:

• In managing new connection requests, a key enhancement has been automated communication of documents to applicants, thereby streamlining the process and reducing manual intervention.

• In managing complaints submitted over e-mail, RPA has been further reinforced with machine learning, resulting in more responsive and effective complaint resolution as well as reduced processing time.

• Another initiative at an advanced stage of implementation focuses on automating the handling of walk-in consumer complaints. Once fully implemented, this system will significantly reduce wait times, improving customer service and satisfaction.

Going forward, there are plans to expand RPA to additional processes to optimise workflows, ensuring more efficient and accurate processing.

In FY 2024-25, the Company embarked upon a "Tech Refresh" project involving setting-up of a state-of-the-art private cloud infrastructure using hyper-converged technology. This will provide a robust, failsafe platform in line with the business continuity plan. Several mission critical applications have already been migrated to this new platform.

Cyber security infrastructure and solutions continue to be an important focus area. Regular Vulnerability Assessment and Penetration Testing exercises were carried out for critical IT assets, leading upto immediate remedial steps to bridge identified gaps. Other notable initiatives in this respect in FY 2024-25 include implementation of Privileged Access Management tool for all critical software applications, migration of ISO 27001 to the latest 2022 standard as well as creating Cyber Crisis Management Plan (CCMP) guidelines for both Generation and Distribution businesses.

ENVIRONMENT SOCIAL GOVERNANCE _ESG_

CESC recognises the importance of environmental, social and governance (ESG) considerations for the overall well-being of the ecosystem. It has embraced ESG principles, in line with the vision of RP Sanjiv Goenka Group, incorporating these into its strategic planning both as a risk mitigation tool and to support long-term growth and value creation.

As a company operating in the energy sector, CESC is required to comply with several regulations and environmental norms. Its initiatives, however, reflect its voluntary commitment to responsible, ethical and sustainable business practices which often go beyond the requirements emanating from existing statutes. While some of the key initiatives in the areas of environment and sustainability have been discussed in this Report, a more structured and in-depth presentation of the Companys ESG journey in FY 2024-25 can be found in the CSR Report, Business Responsibility and Sustainability Report, Report on Corporate Governance and Additional Shareholder Information, which form a part of this Annual Report.

Further, the Companys ESG Report for FY 2023-24, which contains disclosures on non-financial parametres for CESC as well as its key operating subsidiaries in adherence to the GRI Standards, is available on its website. The preparation of its FY 2024-25 edition is currently in progress.

CORPORATE SOCIAL RESPONSIBILITY _CSR_

CESC remains steadfast in its commitment to enhance the quality of life in the communities it serves, by empowering individuals and fostering sustainable, long-term outcomes. Through focused and thoughtful interventions, the Company has significantly contributed across a wide spectrum of social impact areas, including education, healthcare, environmental sustainability, skill development and livelihood creation.

In recognition of its efforts, CESC earned several accolades during the year. The Company was adjudged Winner in the Mega Enterprise Category at the 7^th ICC Social Impact Awards 2024 for its Sustainable Nutrition and Health Education (SNEH) Project. Additionally, its Project Eklavya — CESC Skill Academy — was acknowledged as 2^nd Runner-up at the BCC&I Third Edition Social Leadership Awards. Project Eklavya also secured the Gold Category award for Skill Training and Development at the Grow Care India 8^th Annual Excellence Awards 2023-24.

A detailed overview of the Companys CSR initiatives and performance during the year is available in the Report on Corporate Social Responsibility Activities (Annexure ‘D),

Impact Assessment Reports (Annexure ‘D1 and ‘D2) and the Business Responsibility and Sustainability Report (Annexure ‘E), both forming part of this Annual Report. Some of the key CSR projects undertaken in FY 2024-25 are presented below:

Education

‘Akshar implemented in Ward 66 under KMC is designed to empower children aged 3-18 years from disadvantaged backgrounds. The project offered early childhood support, supplementary educational assistance from primary through higher secondary levels, career counselling, and parental guidance. The initiative reached 321 students and 200 parents.

‘Indradhanush implemented in Kamarhati Municipality is focused on mainstreaming out-of-school children and those engaged in child labour (aged 6-18). The programme facilitates school enrolment and academic support. The initiative impacted 346 children and 337 parents.

‘Muktangan implemented in Pujali, Budge Budge, provides supplementary academic support to first-generation learners and children without adequate educational resources at home, helping them successfully complete secondary schooling. A total of 256 students and 196 parents benefited from this initiative.

Environment

‘Urja Chetana is an environmental education programme implemented in government schools to embed sustainability into academic curricula and raise awareness about climate change, energy conservation, waste management, and biodiversity. In FY 2024-25, the project engaged 13,967 students and 653 teachers across 20 schools.

‘Sankalp is a student-driven initiative implemented in 115 government schools aimed at fostering environmental awareness, conservation ethics, and climate action among young learners. The project benefited 8,972 students and 254 teachers.

‘Kiran, being implemented in Kamarhati Municipality, is a community-led organic waste management initiative that promotes composting through the conversion of household organic waste into vermicompost. Beyond improving local waste management practices, it has created livelihood opportunities through the establishment of a community compost plant, impacting approximately 1,000 individuals from 200 households.

‘Aparajita is a project addressing flower waste management by converting floral waste into eco-friendly products such as floral powder, bio-fertiliser and compost. It is being implemented in North Dum Dum Municipality. The project fosters womens empowerment through the training and involvement of Self-Help Group (SHG) members in sustainable waste management practices. The project covers a population of 3,19,482.

In collaboration with the Kolkata Municipal Corporation, CESC also contributes to the upkeep and beautification of the city by maintaining median strips and green verges along specified roads.

Health

‘SNEH (Sustainable Nutrition and Health Education) is a health project which focuses on improving maternal and child health through a community-centric model that emphasises nutrition and care for pregnant women, lactating mothers and children below 3 years with particular focus on the critical first 1,000 days of life. The Project is being implemented in Tiljala, Pujali and Kamarhati areas benefiting 6,560 individuals in Tiljala, 3,822 individuals in Pujali and 4,574 individuals in Kamarhati.

Skill Development and Livelihood Generation

‘Eklavya – CESC Skill Academy – operates through 14 training centres across Kolkata, Howrah, and North and South 24 Parganas, providing underprivileged youth with industry-aligned skill development opportunities. The programme offers specialised training in diverse domains, including Computer Applications, Customer Relationship Management, Retail Management, Electrical and Electronic Appliances Repair, Beauty and Wellness, Tailoring, Facility Management, and Warehouse Management. During the year FY 2024-25, the Academy successfully trained 2,023 young individuals, of whom 1,459 secured employment with the support of the programmes placement assistance.

FINANCIAL RESULTS

Table 4 summarises the financial performance of CESC Limited both as a standalone and a consolidated entity.

Table 4: Abridged Financial Performance of CESC (Standalone and Consolidated)

( in Crore)

	Standalone		Consolidated
	FY 2024-25	FY 2023-24	FY 2024-25	FY 2023-24
Revenue from operations	9,584	8,606	17,001	15,293
Other Income	181	123	374	251
Total Income	9,765	8,729	17,375	15,544
Operating Costs	6,044	5,615	11,011	9,978
Employee Benefit Expenses	946	991	1,221	1,213
Depreciation	694	720	1,205	1,217
Finance Costs	866	739	1,324	1,234
Other Expenses	1,288	1,238	2,080	1,976
Total Expenses	9,838	9,303	16,841	15,618

( in Crore)

	Standalone		Consolidated
	FY 2024-25	FY 2023-24	FY 2024-25	FY 2023-24
Regulatory Income/ (Expense)	1,135	1,496	1,248	1,757
Profit Before Taxes (PBT)	1,062	922	1,782	1,683
Tax Expense	262	147	354	236
Profit After Taxes (PAT)	800	775	1,428	1,447

Standalone Performance

Total income (including other income) of CESC grew by 11.9% from 8,729 Crore in FY 2023-24 to 9,765 Crore in FY 2024-25. Operating costs and other expenses increased in FY 2024-25. In contrast, employee benefit expenses reflected decline, compared to the previous year. Total expenses increased by 5.8% from 9,303 Crore in FY 2023-24 to 9,838 Crore in FY 2024-25.

Profit before taxes (PBT), after incorporating regulatory income, increased by 15.2% from 922 Crore in FY 2023-24 to 1,062 Crore in FY 2024-25. Profit after taxes (PAT) also improved from 775 Crore in FY 2023-24 to 800 Crore in FY 2024-25. Earnings per share (EPS) for the year was 6.03, compared to 5.85 in FY 2023-24.

None of the key financial ratios - Debtors Turnover Ratio, Inventory Turnover Ratio, Interest Coverage Ratio, Current Ratio, Debt Equity Ratio, Operating Profit Margin and Net Profit Margin for the Financial Year 2024-25 reflected a change of 25% or more as compared to the immediately previous Financial Year 2023-24. Return on Net Worth on Standalone basis for the Financial Years 2024-25 and 2023-24 stood at 8.1% and 7.8%, respectively.

Consolidated Performance

Total income (including other income) of CESC as a consolidated entity grew by 11.8% from 15,544 Crore in FY 2023-24 to 17,375 Crore in FY 2024-25. Total expenses during the year increased by 7.8% from 15,618 Crore in FY 2023-24 to 16,841 Crore in FY 2024-25.

Profit before taxes (PBT), after incorporating regulatory income grew by 5.9% from 1,683 Crore in FY 2023-24 to 1,782 Crore in FY 2024-25. Profit after taxes (PAT) for the year stood at 1,428 Crore, compared to 1,447 Crore in FY 2024-25. Earnings per share (EPS) was 10.32 in FY 2024-25, versus 10.38 in the previous year.

INTERNAL CONTROLS

The Companys internal control systems are commensurate with its size and the nature of its operations. It has well documented policies, procedures and authorisation guidelines to ensure that all assets are safeguarded against unauthorised use or losses, all transactions are properly authorised, recorded and reported, and all applicable laws and regulations are complied with.

The effectiveness of internal control mechanism is tested and verified by the Internal Audit Department, covering all divisions and key areas of operation, based on an annual audit plan giving due weightage to the various risk parametres associated with the business. Major audit observations and follow-up actions are regularly reviewed and monitored by the Audit Committee and placed before the Board of Directors. The Internal Audit Department also assesses the effectiveness of risk management and governance processes.

RISKS AND CONCERNS

CESCs Risk Management Committee operates on a comprehensive risk management framework that the Company has put in place over time. The Committee is headed by Mr. P.K. Khaitan, a Non-executive Director and comprises other members of the Board and senior management team as mentioned in the attached Report on Corporate Governance.

At CESC, risks are systematically evaluated, categorised and suitable actions are taken to mitigate these. Divisions identify operational and tactical risks and suggest measures for mitigation and control. Departmental heads manage risks at the departmental level, whereas the top leadership team supervises and monitors the risk identification and mitigation activities of each division. CESC has identified the following key areas of risks and concerns.

Macroeconomic and Market Risks

Even as geopolitical risks continue to be relevant, immediate risks to the global economy comes from the disruptive tariff policies announced by the US. This can also impact the prospects for Indian economy by affecting trade and capital flows. As far as the power sector is concerned, surplus power generation capacities expose the industry to risks associated with difficulties in executing PPAs and adverse price movements in the short-term power market. Availability of coal, coal prices, coal quality and linkages for new projects continue to be issues of concern.

Although the Indian economy witnessed a deceleration in growth in FY 2024-25, the fundamentals continue to be strong. The global shift to electricity as a favoured and cleaner source of energy is now decisive, improving long-term prospects for strong growth of the sector. As far as CESC is concerned, most of its generation capacities have long-term power sale arrangements. It is well placed to access state and national grids to sell surplus power and has been successful in adequate utilisation of its generation capacities. To mitigate input risks, CESC has adopted a strategy of ensuring long term coal linkages for its projects. quality

Its foray into renewable energy further mitigates risks associated with long-term outlook for thermal power generation.

Operational Risks

As power plants age, their operating efficiencies reduce. Beyond a point in time, shutting down and replacement of these plants become imperative. Other operational risks pertain to natural and man-made disasters such as earthquake, floods and fire that can affect the Companys ability to supply quality power to its customers. Integration of renewable energy into the grid as well as scheduling through implementation of open access power transactions, enhanced variability in management of grid stability and demand supply balances are other such operational risks.

The medium to long term risks associated with generation sites, availability and quality of power have been alleviated with the generation plant at Haldia. Its foray into renewable energy further mitigates risks associated with availability of power for distribution.

To mitigate disaster related risks, the Company has a comprehensive disaster management plan where various functions collaborate and interface with external stakeholders for a proactive disaster management response. The institutional disaster management framework is governed by a three layered structure: Apex Disaster Management Group, Central Disaster Management Group and Nodal Disaster Management Group with a defined responsibility matrix. SOPs are in place for all functions at pre, during and post phases of disasters.

To mitigate fire safety related risks, a dedicated department works on fire safety management at all establishments and capacity building to ensure readiness on fire emergencies. While Fire safety certificates from West Bengal Fire and Emergency Services (WBFES) are available for all major establishments, cutting-edge technologies have been adopted for remote health monitoring of fire safety systems. Regular trainings on fire safety as well as periodic mock drill on firefighting and evacuation during emergency are part of the annual training calendar.

Regulatory Risks

Power is a highly regulated sector. This exposes the Company to risks with respect to changes in policies and regulations. Besides, given the nature of the industry, there is a risk of more stringent policies and norms aimed at addressing environmental concerns. Efficient management and utilisation of fly ash; order to install Flue Gas Desulphurisation (FGD) system in existing thermal power plants; obligations on use of power from renewable sources and use of biomass as a part of fuel-mix are some instances of these policies and restrictions. This can make it more difficult to execute new projects as well as increase cost of operations.

CESC is conscious of these risks and is prepared to take measures to implement changes to ensure compliance with extant regulations in the sector. All generating stations of the Company have achieved 100% ash utilisation. It has a timeline in place to implement FGD systems at its thermal projects in line with the regulatory requirements. Its foray into renewable energy effectively mitigates risks associated with current renewable power obligation for its distribution ventures as well as policies promoting or mandating use of renewable energy sources for electricity generation in the longer term.

OUTLOOK

A decisive shift towards electricity as a favoured energy source is currently underway as the world moves towards cleaner technologies and fuels to meets its climate obligations. This means strong growth outlook for the electricity sector. According to IEA projections, while global energy demand is expected to grow at a CAGR of 0.4% upto 2050, electricity generation is expected to grow at a CAGR of 2.5% — which is over five times the growth in overall energy demand. Growing consumer preference for electricity as a favoured source of energy for household and mobility needs should further reinforce this trend.

The situation in India is even more encouraging where the sector would benefit both from growth in overall energy demand as well as the shift to electricity. The outlook for the Indian economy remains positive, with the RBI projecting a 6.5% GDP growth in FY 2025-26. Growth in electricity demand has been strong over the last few years and is likely to remain so as incomes rise. Policy initiatives by the government such as focus on manufacturing, electric vehicles and universal electricity access should further strengthen this trend.

This should augur well for CESC, which has expertise in both power generation and in operating distribution networks across the country.

Cautionary Statement

The financial statements appearing above are in conformity with accounting principles generally accepted in India. The statements in the report which may be considered ‘forward looking statements within the meaning of applicable laws and regulations, have been based upon current expectations and projection about future events. The management cannot, however, guarantee that these forward looking tatements will be realised or achieved.

For and on behalf of the Board of Directors
	Dr Sanjiv Goenka
Place : Kolkata	Chairman
Kolkata, May 15, 2025	DIN: 00074796