New Delhi: The Rajasthan government on Wednesday night said that it has agreed to transfer its 1,000 megawatt (MW) Chhabra thermal power plant to NTPC Ltd, a central government power utility, in an asset-for-equity deal.
AES India, Adani Power, Tata Power-ICICI were in race for acquiring the Rajasthan power project, Mint had reported earlier on Wednesday.
A statement from the Rajasthan government said that eventually two more units of 660 MW each will be transferred to NTPC after their completion. The statement did not mention the valuation of the assets or the equity it would get in NTPC.
“After transfer of Chhabra thermal power plant to NTPC, the state government will receive equity as per latest valuation, and the losses being incurred from Chhabra will stop after transfer of the plant and debt liabilities of the state government shall also be reduced,” said the statement.
After the agreement with NTPC was reached, power minister Piyush Goyal tweeted that the deal will help improve efficiency in power generation from the Chhabra power plants and result in lower tariff for consumers.
The deal was given effect through a tripartite agreement among NTPC, Rajasthan Rajya Vidyut Utpadan Nigam Ltd (RVUN), the state government’s power generation utility, and power trading firm Rajasthan Urja Vikas Nigam Ltd (RUVNL) in the presence of chief minister Vasundhara Raje in Jaipur.
According to the state government, the four units of the Chhabra power plant with a total capacity of 1000 MW project were commissioned between 2010 and 2014 at a cost of Rs5,835 crore. The two 660 MW projects to be transferred have an estimated cost of more than Rs7,900 crore.
As on 31 March 2016, central government held 69.96% in NTPC, while banks and financial institutions held 14.03% and foreign institutional investors 10.75% among institutional shareholders.
NTPC on Thursday informed stock exchanges that it has signed a non-binding agreement with Rajasthan Rajya Vidyut Utpadan Nigam Ltd. and Rajasthan Urja Vikas Nigam Limited for taking over Chhabra Thermal Power Plant’s four units of 250 MW each and two units of 660 MW units each.