NTPC intends to buy stressed power generation assets, in talks with Rajasthan, Madhya Pradesh, West Bengal

KOLKATA: NTPC is on the prowl again. Armed with a reserve of about Rs 5,000 crore, this time the nation's largest power company intends to take over stressed power generation assets from central and state sector units. It is at present in talks with three such entities in Rajasthan, Madhya Pradesh and West Bengal, a person with knowledge of the plan said.

To own such power plants, NTPC is proposing to create joint ventures with state governments where it will take a majority stake. It had previously looked at acquiring private power assets, but the plan hasn't taken off as expected.

"Following slow and dismal progress of NTPC's plan to take over stressed assets from private sector entities, the company has now decided to take over assets or plants that are facing problems in the central and state sector. While we are in talks with three assets at the moment, NTPC is open to taking over more if they are offered to the company," a senior NTPC official said. "We are a cash-rich company and taking over majority stakes in these troubled power plants would not be an issue."

In Rajasthan, NTPC is in discussions with Rajasthan Rajya Vidyut Utpadan Nigam to take over its entire generation capacities through joint ventures. The Rajasthan utility runs plants with a total capacity of about 5,000 Mw. It is also in the process of setting up 900-Mw power capacities, but the projects are delayed by several years.

In Madhya Pradesh, NTPC is talking to MP Generating Company for taking over 1,300 Mw of the Satpura thermal power plant through the same joint-venture model. According to reports, the plant, one of the oldest in the state, faces an uncertain future owing to poor utilisation of fly ash. Its sole fly ash pond is full to capacity and a union government committee has turned down a request to build a new ash pond.

In West Bengal, it is in talks with Damodar Valley Corporation for acquiring the Raghunathpur thermal plant of 2,400 Mw, which is in trouble due to problems over land availability. A portion of this plant is ready, but cannot commence generation due to the absence of land and water. NTPC has taken over power assets in the past as well. It took over West Bengal Power Development Corporation's project in Katwa a few years ago. It took over also a couple of hydroelectric projects in the state. Recently, the company entered into a memorandum of understanding with Jharkhand to acquire the Patratu thermal power station, where it intends to scrap the existing units and set up 4,000 Mw of fresh capacity.