NTPC to evaluate 4-5 private firms' takeover proposals out of 34

Private power companies are planning to sell their assets to the company mainly to cut debt

Of the 34 proposals received by country's largest power utility NTPC for takeover, the company said it has found only about five offers worth considering.

"We have been offered 34 projects of 55,000 MW capacity by the private companies for takeover, only 4-5 projects are worth looking at," an NTPC official said.

The company will evaluate 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.

"We will see which projects are financially, aggressively good for us mainly in terms of financial returns, how much has to be invested, their PPAs (Power Purchase Agreements) and everything before deciding to take over," the official said.

The private power companies are planning to sell their assets to NTPC mainly to cut debt.

However, he refused to divulge the timeline for finalising the proposals and name of the private companies which have made those offers.

NTPC sought Expression of Interest (EOI) from state electricity boards, power generation companies, independent power producers etc for offering their coal-based thermal power projects for possible acquisition.

The company advertised the same, asking companies to come forward with their stranded projects, which it will evaluate one by one and then take a call.

Against this EOI, 34 proposals have been received, he added.

NTPC, which currently generates over 43,000 MW, aims to add 14,000 MW capacity by 2017.