NTPC eyes Tungabhadra Steel to boost manufacturing capacity

NTPC eyes Tungabhadra Steel to boost manufacturing capacity

New Delhi: NTPC Ltd, the country’s biggest power generation utility, is exploring the possibility of acquiring Karnataka-based public sector firm Tungabhadra Steel Products Ltd as part of a strategy to enhance its equipment manufacturing capability and reduce dependence on BHEL.

“NTPC is looking into the possibility of a takeover of TSPL... initial discussions have already been held," official sources said.

The move is part of efforts being undertaken by NTPC to increase its manufacturing capacity following power ministry’s directions in this regard. The ministry wanted NTPC to get into manufacturing as it feels state-run supplier Bharat Heavy Electricals Ltd (BHEL) will not be able to meet its demand for adding generation capacity of 78,000 MW during 2007-12.

The ministry had also earlier partially blamed BHEL, the country’s largest maker of power equipment, for falling almost 50% short of the 10th plan target of adding 41,000 MW fresh generation capacity in the country.

Sources said a team of NTPC officials have already visited TSPL unit at Bellary in Karnataka to take first hand information and held discussions with its officials.

TSPL, a subsidiary of Allahabad-based Bharat Yantra Nigam Ltd, is under the administrative control of Union Ministry of Heavy Industries which controls central government’s 79% equity. The company has been posting losses and the Union Cabinet had last year approved a proposal to either hand it over to another PSU or sell it to private sector players.