NTPC gains on foraying into overseas markets

NTPC has gained 1% at Rs 163 after the state-run power producer announced plans to set up 500 MW coal based power plant in Sri Lanka, marking its foray into the overseas market. The plant, which is estimated to see an investment of up to $700 million, would come up at Sampur in Trincomalee.

"The project would go on stream by 2016 and would help in meeting the rising demand for power in Sri Lanka," the company said in a statement.

A 50:50 joint venture company would be incorporated in Sri Lanka by NTPC and Ceylon Electricity Board for the project.

Meanwhile, in a statement, NTPC said it had decided to recall the ‘regulation notice’ served on the two BSES companies- Rajdhani Power Limited and Yamuna Power Limited, as they had given a written assurance to pay the dues. “BSES Rajdhani Power Limited and BSES Yamuna Power Limited have given a written assurance to NTPC that they are going to unconditionally restore the letter of credit, clear the balance outstanding dues and also undertake to pay the arrear bills in six equal installments before March, 2012," said the statement.

The state-run power producer NTPC had served notices to the subsidiaries of Reliance Infrastructure, which distributes power in Delhi, for suspension of power supply over non-clearance of dues amounting to about Rs 900 crore.

The scrip opened at Rs 162 and touched the day's high at Rs 164. Around 36,826 shares have changed hands on the BSE counter so far.