NTPC takes equity stake in two Bihar power projects

The NTPC has announced equity acquisition of two state-owned power plants in Bihar for ~21 billion. NTPC took a 50 per cent equity stake in Nabinagar Power Generating Company and a 27.36 per cent in Kanti Bijlee Utpadan Nigam Limited from the Bihar State Power Generation Company. Of this, NPGC was a 50:50 joint venture between the Bihar government and the NTPC.

India’ s largest thermal power generator NT PC Limited announced equity acquisition of two state-owned power plants in Bi ha rf or an estimated ~21 billion. NTPC took 50 percent equity stake in Na bin ag ar Power Generating Company(NPGC) and 27.36per cent K anti Bijlee Utpadan Nigam(KBUNL) from Bihar State Power Generation Company, which was operating it earlier. Of this, NPGC was a 50:50 joint venture between the Bihar government and NTPC, set up in 2007. The envisaged capacity of the project is 1,980 MW and is under construction. NTPC is now the 100 per cent equity holder in the project. The company, in a public statement, said it signed a MoU with the government of Bihar for Company’s equity in both the projects.

NTPC has been actively looking for brownfield projects to acquire. This February, it issued a tender to take over stressed asset. Only three projects — Bara 1,988 MW (Jaypee Group), Lalitpur 1,980 MW (Bajaj Hindusthan) and Angul 1,200 MW (B C Jindal), Nigrie power unit 1302 MW (Jaypee group) expressed interest. Of these, two are being evaluated, said officials. Last year, NTPC had signed a non-binding MoU with the Rajasthan government to take over Chhabra thermal power plant.