NTPC not to acquire stressed projects: Report

STATE-owned power utility NTPC does not want to acquire any stressed assets from private companies. Instead it wants to help banks that take them over for non-repayment of debt, run these stations in lieu of a service charge.
“For assets that are still under implementation NTPC intends to assist banks complete construction of these projects and achieve commercial operations,” said K Biswal, director finance at NTPC.
He was talking to reporters at the 7th Asian Mining Congress organised by The Mining, Geological Metallurgical Institute of India (MGMI) in Kolkata on Wednesday.
NTPC had decided on taking over stressed assets a few years ago. However, it did not end up acquiring any such power units or plants from the private sector although a number of plants were up for grabs.
Later the company, decided on taking...
over assets from state-owned power companies that were not running very well. According to sources, NTPC has taken over a number of thermal and hydle power plants from other central sector companies as well as state owned power stations.
Neyveli Lignite Corporation of India Ltd (NLCIL) has identified Damodar Valley Corporation's Ragunathpur thermal power plant for acquisition, the minister said.
Neyveli Lignite has also shortlisted two suitable stressed power assets for a possible takeover to increase its electricity generation capacity, he added.
With 20 coal-fired power projects set up across the country, the Maharatna PSU contributes 38,755 MW of power in the national grid. It wheels another 5249 mw of power in joint venture with various state sector power utilities.
Biswal said NTPC is expected to complete acquisition of the Chhabra plant from the Rajasthan government “soon”. The change in ownership of the coal supply agreement will help in concluding the deal.
The station includes a 1,000-MW unit that is running and another 1,320 MW capacity that is under construction. “We are taking over the Chhabra power plant and going by regulated depreciated book value subject to approval of Central Electricity Regulatory Commission,” he said.
NTPC signed a tripartite memorandum of understanding (MoU) in January with Rajasthan Rajya Vidyut Utpadan Nigam (RVUN) and Rajasthan Urja Vikas Nigam Ltd (RUVNL) for the transfer.