NTPC mulls buy of MP unit

NTPC is examining whether to acquire the Sarni thermal power station of a state government company, in Madhya Pradesh's Betul district. NTPC sources said 'due-diligence' is on.

A state government source said, “NTPC already has presence in Madhya Pradesh, as they run one of the largest thermal power stations, the Vindhyachal project. It would be better to hand over the Sarni project to them or run it as a joint venture. Much will depend upon their due-diligence. SBI Caps is doing it.” NTPC would not comment.

The first unit of 67.5 Mw of the coal-fed Sarni project, also known as the Satpura thermal power project, came into operation in October 1967. It the project goes to central government-owned NTPC, the state government might offer the employees an incentive to quit. "It will depend upon the cost, etc," an NTPC and state government source said.

Located at Sarni town near Ghoradongri railway station in Betul district, it is one of the power plants of Madhya Pradesh Power Generating Company Ltd. It has an installed capacity of 1,392 Mw. The nearby Tawa river reservoir supplies water to the plant; coal comes from the nearby Western Coalfields.

NTPC has plans to seal a similar deal with the Jharkhand government for the 770 Mw Patratu thermal power station in Ramgarh district. This is run by the Jharkhand State Electricity Board.

A final decision would depend upon many factors including compatibility of machinery. Power supply rates could be revised if investment goes into new machinery, employees, etc.

Officiating head

A K Jha, Director (Technical), NTPC, took additional charge on Tuesday as chairman and managing director.

A mechanical engineer from BIT Sindri, Ranchi University, he joined NTPC in 1977 as an executive trainee.

NTPC Limited

State Bank of India