Thirteen entities, including private power companies and banks have evinced interest in a tender floated by NTPC, seeking buyout of stressed assets. These entities have bought the bid document and are expected to offer their stressed assets to NTPC. NTPC has extended the deadline for submission of applications by four weeks.
There are 34,000 MW of stressed assets in the power sector, including those of Essar Power, GMR Infrastructure, GVK Infra, DB Power and Abhijeet Power, and most of the coal-based plants of these assets may explore the NTPC buyout plan.
Estimates show that of the Rs 9 lakh crore worth of stressed assets in the country, more than half is in the power generation space.
In November, NTPC had said that it is looking to acquire operational coal-based power plants built with local equipment and lower generation costs. The company had invited bids from promoters, lenders and financial intermediaries offering their domestic coal-based power plants. The power producer had earlier explored about 50 proposals but shelved buyout plans due to concerns over valuations.
As per its current plan, NTPC will only look at running power plants commissioned in the last three years which are close to any coal source and whose cost of power generation is less than its own generation cost. The average cost of electricity generation from NTPC stations last financial year was Rs. 3.19 per unit.
NTPC has an installed capacity of 51,708 MW comprising 28 coal-based, eight gas-based and 13 renewable energy and hydro power projects, while another 20,000 MW of projects are under construction.