Hindustan Power may come out with IPO in 2017

Integrated power firm Hindustan Power is likely to come out with an Initial Public Offer (IPO) next year.
"Sometime in 2017 depending upon our capital need, we may look at an initial public offer," Hindustan Power Chairman Ratul Puri told reporters here.
The company today announced commissioning of 1,200 MW (2x600 MW) Phase-I of its 2,520 MW Anuppur thermal power plant in Madhya Pradesh, here.
The second Phase of 1,320 MW (2 x 660 MW) is shovel ready and can be taken to construction within three months, he added.
The first phase of the project was commissioned on March 30 at a cost of Rs 8,000 crore. The project has direct connectivity to the National Grid and is situated close to coal source.

The company has already entered a Power Purchase Agreement (PPA) with Madhya Pradesh and Uttar Pradesh for supply of power.

Coal for the project is secured through a Fuel Supply Agreement with South Eastern Coalfields.
"The company will look into the option of equity infusion if need arises," Puri said.
About the company keeping off from solar auctions, Puri said ,"it has been nine months. We have actually stepped out of solar biddings. We think that tariff (quoted in biddings of the projects) is too aggressive. The rational rate of tariff for solar tariff is Rs 5-5.5 per unit."
He was also of the view that renewables should not be more than 10 per cent of the energy mix of the country.

Asked whether government's clean power capacity addition target of 175 GW is very aggressive, Puri explained that the PLF or capacity utilisation of renewables is about 20 per cent. Thus adding 175 GW means renewables' share of 35 GW in overall energy mix of 350-400 GW.