Millennium Post

NTPC to power expansion by buying out private firms

'I won't specify any organisation, we have a couple of proposals and a board sub-committee is looking at it and will soon finalise those proposals,' National Thermal Power Corporation CMD Arup Roy Choudhury told reporters here. The company will also advertise for the same, asking companies to come forward with their stranded projects, evaluate them one by one and then take a call.

'We don't start a project unless we have the coal linkage, environmental clearance, land and water available and also have a PPA (power purchase agreement). When all this is tied-up we start the project,' Choudhury said when asked about the criteria for taking over a stranded power project. On the financial impact these acquisitions would have on the company, Choudhury said, 'Look at my balance sheet, I have a lot of money.'

The company is also hopeful of finalising these proposals by the end of the calender year. It is looking at the quality of equipment of these projects, the level of clearances they have achieved, coal availability and sourcing the fuel in case of non-availability before buying these thermal power stations. NTPC is reportedly in talks with private power companies like L&T and Shapoorji Pallonji Group for taking over their stranded plants. The state-owned generation firm aims to add 14,000 MW capacity by 2017.

'We don't have coal shortage for this 14,000 MW, there is 20,000 MW more under execution and we don't have any coal problem for that as well, no issue, we are going ahead full steam the way we planned,' he said.

The company, which last month issued notices to Delhi discoms — BSES Rajdhani and BSES Yamuna — for clearing their outstanding dues, said it will make its presentation in this regard to the Supreme Court soon.

'We will make the presentation to the Supreme Court soon and as far as payments from BSES is concerned, we are not worried because as per PPAs any delayed payment is made to us, it will be along with the penalty i.e. 15 per cent interest,' he added.

ONGC, OIL likely to buy IOC stake at 10% discount

New Delhi:
The Government is likely to sell its 10 per cent stake in Indian Oil Corporation Ltd (IOCL) through an off-market deal to national companies ONGC and OIL at a discount of 10 per cent over the current market price.

‘The IOC stake sale will be an off-market deal... The price will probably be at 10 per cent discount to current market price,’ a top government official said.

As per the current market price, the government is expected to fetch Rs 5,300 crore by selling 10 per cent equity or 24.27 crore shares at discounted price to Oil and Natural Gas Corp and Oil India Ltd. Both the companies would be buying 5 per cent each.
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