In order to undertake power trading in a big way, Power Trading Corporation (PTC) has proposed to enhance its equity base from the existing Rs 150 crore to Rs 3,000 crore. An approval to this effect is expected shortly from the government.
Plans To Approach Market To Raise Rs 16 Crore
Following delays in getting the governments approval to restructure its equity base, Power Trading Corporation (PTC) is planning to approach capital market to raise Rs 16 crore as equity.
PTC chairman TN Thakur told reporters on Wednesday that considering a small equity base of Rs 24 crore and looking at the potential of trading large quantities of power, the corporation has decided to expand its equity base by Rs 16 crore. PTC has started negotiations with the financial institutions and banks for private placement of shares, Mr Thakur said.
Asked if money would be raised from the capital market alone or the power companies would be allowed to share the equity, he said, Once the restructuring proposal, pending with the group of ministers, was approved, I shall approach power developers and companies.
According to PTC chairman and managing director TN Thakur, there is an immediate need to increase the equity base of the corporation as leading private power producers were in touch with PTC for undertaking trading of power. “The proposal to enhance our authorised equity base to Rs 3,000 crore from the existing Rs 150 crore is already pending with the group of ministers (GoM) on power. This much equity would be required to encourage the large investors to undertake large quantities of power trading,” Mr Thakur added.
Currently, PTC is operating with small paid-up equity base of Rs 24 crore. “The corporation has also announced a net profit of Rs 7.35 crore for the last financial year and PTC is happy to announce seven per cent dividend in the very first full year of its operations,” he added.
Asked if existing PTC promoters - NTPC, PGCIL and PFC - were contacted for putting in the required money as equity, Mr Thakur said. “First the restructuring proposal has to be cleared in which government and government-owned companies would reduce their equity from 60 to 30 per cent.”