We reinstate coverage on CESC with a BUY. Concerns about IPL (the stock has corrected ~17% since the bid) and the loss-making Spencer?s Retail are priced in, but CMP does not factor in two key developments: (1) An FSA with Coal India in Mar-16 for the Chandrapur project (supply of coal from SECL has started in Apr-16), and (2) In-principle nod by the UPERC in Jan-16 for a long-term PPA to supply 187MW power to Noida Power Company Ltd (NPCL).