NTPC eyes stressed assets to strengthen growth plan

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SummaryPower major NTPC is looking at taking over stressed assets as part of its plan to grow inorganically, its CMD Arup Roy Choudhury said.

Power major NTPC is looking at taking over stressed assets as part of its plan to grow inorganically, its CMD Arup Roy Choudhury said here on Wednesday. The power major has received proposals from seven coal-based power plants, which are either completed or on the verge of completion and not viable.

Talking to media after inaugurating a solar PV project at Ramagundam, Arup Roy Choudhury, CMD, NTPC said, “We will do due diligence and if it makes commercial sense, we will go ahead with the acquisition. Capital is not an issue if you see our balance sheet. The energy from the proposed acquired plant should be saleable and the quality of the equipment should be good, which is part of the due diligence process,” he said.

As of March, 2013, NTPC has cash reserves of Rs 16,867.70 crore. A sub-committee has been formed to screen those assets which are not doing well and good for acquisitions.

On import of coal, he said the company was currently importing 50-60 tonnes of coal but would gradually try and reduce the import dependency. “We 5 billion tonnes of reserves. In the next 6-7 years of time, we will have 100 million tonnes of coal per annum,” he said.

According to Choudhury, the company is considering entering the nuclear power arena besides looking at a wide mix of energy portfolio, including hydro, green, wind and solar. The Ramagundam solar PV first phase is of 10 MW capacity which was commissioned on Wednesday. It was financed via a 70:30 debt equity ratio. As per its estimates, a 10 MW of solar plant will be generating 14 million units per annum.

NTPC has plans to have a portfolio of 1,000 MW capacity through renewable energy sources by 2017. The long-term plan envisages a vision of becoming a 128000 MW plant by 2032 with 28% from non-fossil fuel sources.

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