With an edge over private players, power PSUs put capex above reducing debt

Better debt ratios, regulatory comfort place NTPC, NHPC at an advantage over private players

At a time when private sector power companies have been bringing down their debt levels, the country’s largest power generator, NTPC, and its peer, NHPC, have decided not to make this their priority owing to their capital expenditure requirements and comfortable balance sheets.

Even so, on April 26 this year, the government-owned NTPC reported that it ended the previous financial year with an outstanding standalone borrowing of Rs 1,15,758 crore—-24 per cent lWith an edge over private players, power PSUs put capex above reducing debtower than its outstanding borrowing of Rs 1,52,694 crore on March 31, 2020.

However, this figure