NTPC to take over Kanti, Nabinagar JV plants for Rs 3,000 cr

NTPC to take over Kanti, Nabinagar JV plants for Rs 3,000 cr

New Delhi, Mar 11 (PTI) State-run power giant NTPC is likely to finalise the acquisition of entire stake of Bihar State Power Holding Company Ltd (BSPHC) in its two JV plants at Nabinagar and Kanti for around Rs 3,000 crore in a month.

"The negotiation is in advance stages. NTPC will acquire entire stake of BSPHC, erstwhile Bihar State Electricity Board (BSEB), in Kanti and Nabinagar plants for around Rs 3,000 crore in a month," a source said.

Earlier the Bihar political leadership has spoken many times about their intend to sell the BSPHC stake in the Nabinagar and Kanti power plants to NTPC.

Kanti Bijlee Utpadan Nigam, (formerly known as Vaishali Power Generating Company Ltd) was incorporated on September 6, 2006, with NTPC contributing 51 per cent of equity.

The BSEB has the remaining equity in the joint venture which was renamed as Kanti Bijlee Utpadan Nigam on April 10, 2008. Present equity holding of NTPC is 64.57 per cent & BSEB is 35.43 per cent. It has 610 MW installed power generation capacity.

Similarly, Nabinagar project known as Nabinagar Power Generation Company Pvt Ltd is also a joint venture of the NTPC and BSEB. The equity participation of the NTPC and BSEB is 50:50. The plant has 500 MW installed generation capacity and another 500 MW is under construction.

Apart from Bihar, the company is also eyeing stakes in other stressed assets and plants owned by the state utilities.

The company is also looking at power generation units owned by Rajasthan utilities, the source said, adding that a deal could materialise in the next financial year. PTI KKS KKS MKJ ANS ANS