NTPC looks to buy out Anil Ambani’s Reliance ADAG distribution units in Delhi

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May 28, 2020 12:49 PM

India's largest electricity generator NTPC Ltd is eyeing Anil Ambani’s Delhi power distribution units after three groups have already submitted non-binding bids for Reliance Infrastructure Ltd’s BSES Rajdhani Power Ltd and BSES Yamuna Power Ltd (BYPL),

The Anil Ambani-run troubled Reliance ADA Group is looking to reduce its debt by selling stakes in the companies held by it.

India’s largest electricity generator NTPC Ltd is eyeing Anil Ambani’s Delhi power distribution units after three groups have already submitted non-binding bids for Reliance Infrastructure Ltd’s BSES Rajdhani Power Ltd (BRPL) and BSES Yamuna Power Ltd (BYPL), Reuters reported. “NTPC is keen to explore the opportunities for acquiring 51% stake in BRPL and BYPL, which are on sale,” the New Delhi-based NTPC said in a letter to the Delhi Electricity Regulatory Commission dated 26th May 2020. For now, Reliance Infrastructure owns a majority stake in BSES Yamuna and BSES Rajdhani, which are joint ventures with the government of Delhi.

The Anil Ambani-run troubled Reliance ADA Group is looking to reduce its debt by selling stakes in the companies held by it. The group has already sold its Mumbai electricity distribution business to Adani Transmission in 2018 for Rs 18,800 crore. In its March quarter results, Reliance Infrastructure said that the company “aims to be zero debt in the next financial year based on liquidity events”.

Earlier, Italy-based Enel Group, Torrent Power Ltd and Greenko Group submitted non-binding offers to buy Reliance Infrastructure Ltd’s 51% stake each in BSES Rajdhani Power Ltd and BSES Yamuna Power Ltd, the companies which supply electricity to around 44 lakh customers in the national capital. “We would like to inform you that NTPC has decided to foray into the distribution sector and is keen on acquiring the distribution assets,” NTPC said in the letter, referring to Reliance subsidiaries BYPL and BRPL.

Established in 1975, NTPC is India’s largest power utility and has an installed capacity of 62,110 MW, including the capacity of its JVs. The company plans to scale this upto 130 GW by 2032.

The Anil Dhirubhai Ambani Group had entered into power distribution in Delhi in 2002 after Delhi Vidyut Board was unbundled into three power distribution companies viz BRPL, BYPL and NDPL. Meanwhile, India looks to privatise all electricity distribution in Union Territories, power minister Raj Kumar Singh said recently.

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