Monday, May 19, 2014

NTPC on acquisition spree, lines up Rs 30K crore

NTPC CMD AR Choudhury
IT will emerge the biggest acquisition in India's power sector as the country's largest power PSU National Thermal Power Corp (NTPC) has geared up to buy Rs. 30,000 crore worth of coal-based power projects. According to a media report, the Maharatna PSU has received...
31 proposals in response to an expression of interest (EoI) floated by NTPC. Now, NTPC will seek board nod to invest close to Rs. 10,000 crore to acquire some of the best thermal power projects in the country that have been put up by private developers.
The 31 proposals or EoIs were put up before the board at its last meeting on May 16, day when the results of Parliamentary elections gave Narendra Modi- led BJP and its NDA allies a clear mandate for a five-year term.
The acquisition process is likely to be completed before year-end.
NTPC may buy six to seven thermal projects by way of a complete takeover. Jaypee Group’s 500-MW Bina thermal project along with its 1,320-MW Nigrie thermal project in Madhya Pradesh, and its 1,980-MW Bara project in Uttar Pradesh are on NTPC’s radar.
Fuel deficiency, rising borrowing costs, regulatory delays have affected infrastructure projects in India, and promoters are looking to exit. Discussions on such projects have taken place between the ministry and the Prime Minister’s Office, he added.
NTPC is ranked 337th in the ‘2012, Forbes Global 2000’ ranking of the World’s biggest companies. With a current generating capacity of 43,039 MW, NTPC plans to become a 128,000 MW company by 2032.
With an installed capacity of 43039 MW through 16 coal based, 7 gas based, 7 solar renewable and 7 Joint Venture power stations, NTPC contributes approx. 28 percent of electricity in the country, with about 19 percent of India's installed capacity.
NTPC’s core EBITDA (earnings before interest, taxes, depreciation, and amortization) from power generation for Q4 of financial year 2013-14 grew by 14.21 percent. From power generation segment, the PSU posted EBITDA of Rs 4441.80 crore for Q4 of current year as against Rs 3889.18 crore for the corresponding previous period, the PSU power house said in a press release. The profit after tax for Q4 of financial year 2013-14 is Rs 3,093.54 crore as against Rs 4,381.61 crore for corresponding period of the previous year. After excluding one-off items i.e. recovery of discom dues, etc. booked in previous year, profit after tax has increased by 35.41 percent over the previous corresponding quarter, the statement added.

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