DVC mulls acqusition of stressed power plants

Says it was approached by approached by banks

Damodar Valley Corporation (DVC) today said it has been approached by banks to buy some stressed power plants as the assets have become non-performing assets (NPAs) to the lenders.

“Some banks have come and approached us to buy some stranded independent power projects(IPPs). We are studying this and may go for acquisition," DVC chairman Rabindra Nath Sen said here.

However, Sen refused to share identities of the IPPs. “We were approached only in the last week. Not in a position to share details,” he said.

According to Sen, DVC would try to develop a model if it goes for acquisition. “May be the both the lender and DVC would be the part owner. The operational management will be under DVC. But, these are at very primary level,” he added.

NTPC too recently had said, it was doing due diligence to buy some stressed power plants after being approached by the banks.

Asked whether DVC is planning to work in a consortium with power major like NTPC for this, Sen said, “There have been no such discussions in those lines. We may or may not work in consortium for acquisition. It is too premature to comment on this.”Incidentally, DVC registered Rs 392 crore net profit in 2012-13 after losses in the two previous years.

Besides it has sought about Rs 9000 crore assistance from World Bank to fund some its future projects apart from the acquisition.

"We have sought some Rs 9000 crore from World Bank for five projects including Balpahari Dam, low tension distribution network in Jharkhand, solar, upgradation of transmission and distribution network," DVC chairman R N Sen said. Also, DVC has initiated the process of restructuring the entity by hiving off the generation business into a separate company, which may go for public listing by 2018.