Will wrap up Rajasthan power plant deal in 1-2 months, says NTPC
Power generation major NTPC Ltd will complete the takeover of the first phase of Chhabra Thermal Power Plant (1,000 MW) of Rajasthan government in ‘a month or two’ at an estimated cost of Rs 4,000 crore, a top company official said today. “We are taking over Chhabra power plant from Rajasthan government and the deal for the 1,000 MW will be sealed in a month or two,” NTPC director, finance, Kulamani Biswal said here on the sidelines of an mjunction-organised coal conference.
He said the company is going by regulated depreciated book value and based on this calculation, the plant valuation has been arrived at Rs 4,000 crore. However, it is subject to approval of the regulator — Central Electricity Regulatory Commission (CERC). CERC has approved the project at Rs 5,200 crore and in the last four years, factoring in depreciation, the final value stands at Rs 4,000 crore, Biswal explained. He said that in this case, debt could be higher at 75 per cent compared to a standard formula of 70:30 debt equity ratio.
An agreement by NTPC, Rajya Vidyut Utpadan Nigam, and Rajasthan Urja Vikas Nigam (RUVNL) was signed in January 2017. Under the agreement, NTPC will take over the running 1,000 MW (2×250 MW) plant in the first phase and the under-contraction plant of (660 MWX2) will be taken over once the project gets commissioned. The deal will help improve efficiency in power generation from the Chhabra power plants and result in lower tariff for consumers.
NTPC will reportedly phase out of 11,000 MW of old and polluting power units besides exploring acquisitions of other states’ loss-making power generation businesses to turn them around. The company will replace its old plants in Talcher and Singrauli. NTPC’s 13 power plants out of 22-odd are facing critical coal stock. “The average coal of all plants is seven days but in 13 plants the stock is three days or less,” Biswal said.