NTPC to take over Kanti, Nabinagar JV plants: Report

STATE-owned power giant NTPC is likely to finalise the acquisition of entire stake of Bihar State Power Holding Company Ltd (BSPHC) in its two JV plants at Nabinagar and Kanti for around Rs 3,000 crore in a month. “The negotiation is in advance stages. NTPC will acquire entire stake of BSPHC, erstwhile Bihar State Electricity Board (BSEB), in Kanti and Nabinagar plants for around Rs 3,000 crore in a month,” a source told PTI.
Earlier the Bihar political leadership said about...
selling the BSPHC stake in the Nabinagar and Kanti power plants to NTPC. Kanti Bijlee Utpadan Nigam, (formerly known as Vaishali Power Generating Company Ltd) was incorporated on September 6, 2006, with NTPC contributing 51 per cent of equity.
The BSEB has the remaining equity in the joint venture which was renamed as Kanti Bijlee Utpadan Nigam on April 10, 2008. Present equity holding of NTPC is 64.57 per cent & BSEB is 35.43 per cent. It has 610 MW installed power generation capacity.
Likewise, Nabinagar project known as Nabinagar Power Generation Company Pvt Ltd is also a joint venture of the NTPC and BSEB. The equity participation of the NTPC and BSEB is 50:50. The plant has 500 MW installed generation capacity and another 500 MW is under construction.
Apart from Bihar, the Maharatna PSU is also looking to buy stakes in other stressed assets and plants owned by the state utilities. The PSU is also looking at power generation units owned by Rajasthan utilities, the source said, adding that a deal could materialise in the next financial year.
There are 34,000 MW of stressed assets in the power sector. NTPC is looking to acquire operational coal-based power plants which have lower generation costs, a top NTPC official told thew news agency.
NTPC is currently working on new thermal projects worth 21,000 MW for capacity addition in the next the 3-4 years.
The PSU, which produces about one fourth of the total power in the country despite having only 16 per cent capacity, would expand to meet its role as the leading power supplier to the nation.
In a related development, NTPC on March 8 awarded a Rs 11,700-crore order for setting up a 3x800 MW thermal power plant in Jharkhand to another PSU power equipment major BHEL.
"The order for setting up the 3x800 MW Patratu Super Thermal Power Station Expansion, Phase-I (3x 800 MW) has been placed on BHEL by Patratu Vidyut Utpadan Nigam Ltd (PVUNL - a subsidiary of NTPC Ltd in joint venture with Jharkhand Bijli Vitran Nigam Ltd)," BHEL said in a BSE filing.
Located at Patratu in Ramgarh district of Jharkhand, the project will be executed by BHEL on engineering, procurement and construction (EPC) basis, it added.
BHEL said the commissioning of the project would also lead to phasing out of the old fleet of sub-critical units presently installed at Patratu.