You are here: Home » Companies » News
Business Standard

Will finish acquisition of Chhabra power plant in a month or two: NTPC

The takeover will be at an estimated cost of Rs 4,000 crore

Press Trust of India  |  Kolkata 

Representative image
Representative image

Power generation major Ltd will complete the takeover of the first phase of Chhabra Thermal Power Plant (1,000 MW) of in 'a month or two' at an estimated cost of Rs 4,000 crore, a top company official said on Tuesday.

"We are taking over from and the deal for the 1,000 MW will be sealed in a month or two," director, finance, Kulamani Biswal said here on the sidelines of an mjunction-organised conference.

He said the company is going by regulated depreciated book value and based on this calculation, the plant valuation has been arrived at Rs 4,000 crore.

However, it is subject to approval of the regulator -- Central Electricity Regulatory Commission (CERC).

has approved the project at Rs 5,200 crore and in the last four years, factoring in depreciation, the final value stands at Rs 4,000 crore, Biswal explained.

He said that in this case, could be higher at 75 per cent compared to a standard formula of 70:30 equity ratio.

An agreement by NTPC, Rajya Vidyut Utpadan Nigam, and Urja Vikas Nigam (RUVNL) was signed in January 2017.

Under the agreement, will take over the running 1,000 MW (2x250 MW) plant in the first phase and the under-contraction plant of (660 MWX2) will be taken over once the project gets commissioned.

The deal will help improve efficiency in power generation from the Chhabra and result in lower tariff for consumers.

NTPC will reportedly phase out of 11,000 MW of old and polluting power units besides exploring acquisitions of other states' loss-making power generation businesses to turn them around.

The company will replace its old plants in Talcher and Singrauli.

NTPC's 13 out of 22-odd are facing critical stock.

"The average of all plants is seven days but in 13 plants the stock is three days or less," Biswal said.

First Published: Tue, September 12 2017. 17:19 IST