India’s National Thermal Power Corporation (NTPC) plans to acquire US$5 billion worth of coal-fired power plants, making it the biggest acquisition in India’s power sector.
The state-run power company received up to 31 proposals from developers including Jaypee Power, Lanco, Sterlite, GVK and GMR, the Hindustan Times said in a report. NTPC is seeking board approval for the investments. NTPC managing director Arup Roy Choudhury the acquisition process will be completed before year end.
Among the plants ripe for purchase are Jaypee Group’s 500-megawatt Bina thermal project, 1,320-megawatt Nigrie thermal project in Madhya Pradesh and 1,980-megawatt Bara project in Uttar Pradesh. NTPC said it hopes to takeover six or seven thermal projects.
Several factors in the Indian economy have made plant developers eager to sell.
“Fuel constraints, high borrowing costs, regulatory delays have affected infrastructure projects in India and promoters are looking to exit,” an Energy Ministry official said. “Discussions on such projects have taken place between the ministry and the Prime Minister’s Office.”