NTPC evaluates 7 coal-based power projects for possible acquisition
Chairman Arup Roy Choudhury says the projects are as large as 2,000 MW
Hyderabad: State-owned power producer NTPC Ltd. on Wednesday said it is evaluating seven coal-based power projects, which have been put up for sale by private developers, for possible acquisition.
These projects belong to “developers who no more want to continue with the project and those who are operating the project but don’t feel interested enough to run the project," said Arup Roy Choudhury, chairman and managing director of NTPC, in Hyderabad.
“Independent due diligence is on," Choudhury said.
Choudhury declined to name the developers who approached NTPC with sale proposals but said the projects are as large as 2,000 megawatt (MW).
“I don’t think there is any problem for us in raising money, the project has to be right," Choudhury said.
“We have a very good balance sheet and investors are willing to put money," he added.
Independent power producers in India have beene hit by slowing economic growth, high borrowing costs, lack of fuel supply, delay in environmental and forest clearances and poor financial health of state electricity boards. Economic growth slowed to 5% in the year ended 31 March, the slowest in a decade.
Volatility in the Indian rupee also affected power developers who import power plant machinery like boilers, turbines and generators and have exposure to forex loans.
Shares of NTPC declined 0.66% to close at Rs127.85 on the BSE on a day the benchmark Sensex dropped 0.18% to 20,647.30 points.
Unlock a world of Benefits! From insightful newsletters to real-time stock tracking, breaking news and a personalized newsfeed – it's all here, just a click away! Login Now!