NTPC issues second EOI for acquisition, ready to invest Rs. 5,000 cr

NTPC, the country's largest state-owned thermal power producer, has issued a second expression of interest (EOI) for acquiring coal-based thermal power projects, to put to use its cash reserve of around Rs. 5,000 crore.

The company has invited applications from state electricity boards/power generation companies, independent power producers, power plant developers and captive power producers. The earlier EOI saw an overwhelming response from the private sector. As many as 32 projects with a cumulative generation capacity of 55,000 MW were lined up for sale to the 'maharatna' stature company. Of the shortlisted five projects, private consultancy KPMG is finalising the best buy for NTPC.

'We have money in our balance sheets and our good standing in the market helps us line up financial support pretty well and easily. As a commercial entity, we are looking for good projects to add to our portfolio,' said a senior NTPC executive.

For the current round of acquisition, Rs. 5,000-7,000 crore have been kept aside. The company is looking at a 70:30 debt-equity ratio. This could translate into an acquisition of 3,000-4,000 MW capacity.

BS