NTPC joins fray to buy RInfra's Delhi electricity distribution business

In an ambitious move, the country's largest power producer NTPC is joining the fray for buying out the Delhi electricity distribution business of Anil Ambani-promoted Reliance Infrastructure (RInfra).
 
In a letter to the Delhi Electricity Regulatory Commission (DERC), NTPC said it was keen to buy 51 per cent stake in BSES Rajdhani Power and BSES Yamuna Power — the two distribution companies (discoms) owned by RInfra.
 
It said it was keen to foray into the distribution business, provided “the equity sale is done through a transparent process”.
 
Tata Group, Adani Group, and RP Goenka-promoted Calcutta Electric Supply Corporation are also keen to buy stake in the two companies but say the valuation sought by Reliance Infrastructure is too high, considering the Rs 16,000-crore dues which the two companies owe to electricity producers. Tata Power has one distribution licence for the North Delhi region.

There are over 4 million consumers in East and South Delhi areas, for which the two BSES companies have licence.
 
According to insiders, NTPC can retail electricity through its fully owned subsidiary NTPC Vidyut Vyapar Nigam (NVVN) , which has the highest category of power trading licence that allows it to enter into power purchase agreements.
 
NTPC has earlier made several attempts to get into the distribution business. The company sells around 1,500 megawatt with BSES companies.