NTPC signs MoU with Government of Bihar; aims to improve performance of Power Sector in Bihar

With an aim to improve the performance of Power Sector in Bihar, a Memorandum of Understanding (MoU) was signed between the Government of Bihar (GoB) and NTPC Limited.

The MoU envisages transfer of Barauni Thermal Power Station (720 MW) to NTPC. In addition to this, Bihar State Power Generation Company's (BSPGCL) equities in Kanti Bijlee Utpadan Nigam Limited (KBUN) & Nabinagar Power Generating Company (Pvt.) Limited (NPGC) will also be transferred to NTPC.

All the three power generation facilities are envisaged to be transferred to NTPC from the effective date to be notified by Government of Bihar through a Statutory Transfer Scheme. The transfer of these power stations to NTPC will result in their optimal & efficient utilization, bring the tariff down and benefit the people of Bihar at large.

Power from all the three power station shall be available to State of Bihar as before after approval by the Ministry of Power, Government of India.

Background:

NTPC, a Maharatna Company under Ministry of Power, Govt. of India is the largest power generating company of India with a total installed capacity of 53651 MW (including JVs) from coal, gas, hydro, solar and wind power projects. NTPC is on an accelerated growth trajectory to meet this long-term targets and currently has 21,071 MW capacity under construction. Company has two operational coal mines. NTPC in the past has demonstrated strong capability in turning around under-performing state owned power stations.

Barauni Thermal Power Station (720 MW) which is located at Begusarai district in Bihar. The Plant comprise of Stage-I (2x110 MW) (under advance stages of R&M) and Stage-II (2x250 MW) (under construction).NTPC with its expertise in construction of power projects and contract management capabilities is expected to complete the balance works and achieve sustained commercial operation of units in a time bound manner.

Nabinagar Power Generating Company (Pvt) Limited is a 50:50 Joint Venture Company of NTPC Limited and Bihar State Power Generation Company Limited (BSPGCL). The Company is developing a 1980 MW (3x660 MW) Nabinagar Super Thermal Power Project in district Aurangabad, Bihar. The project is currently under-construction.

Kanti Bijli Utpadan Nigam Limited (KBUNL) is a subsidiary company of NTPC Limited in Joint Venture with Bihar State Power Generation Company Limited (BSPGCL). Currently NTPC and BSPGCL owns 72.64%and 27.36% equity holding in KBUNL respectively. KBUNL owns and operates Muzaffarpur Thermal Power Station (MTPS) (2x110 MW+ 2x195 MW) situated at Kanti, District Muzaffarpur in the State of Bihar. Plant is under operation.

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