The acquisition of Chhabra thermal power plants by NTPC Ltd will help the central power major emerge as a 50 GW or 50000 MW plus company within the next few months.
The Memorandum of Understanding (MoU) that NTPC inked on Wednesday with the Rajasthan state power utilities provides it with the access to taking over an operational 2000 MW thermal power plant or Stage-1 of the
Chhabra Thermal Power Plant Stage-I (4x 250 MW) along with the under construction 1320 mw Stage-II (2×660 MW) of Rajasthan Rajya Vidyut Utpadan Nigam Limited.
All going well, the financial formalities and takeover of the Chhabra projects is expected to be completed within the next six months, said an official.
The 2000 mw Chabra Stage-I is already operational. The takeover therefore assumes significance as with Rajasthan’s Chabra I and II thermal power projects coming under NTPC’s fold, the latter’s installed power capacity that is currently in excess of 48 GW will cross 50,000 mw.
The commissioning of 800 MW unit at Kudgi in Karnataka last month has already taken NTPC’s total installed capacity to 48,028 MW.
The MoU for takeover of Chhabra was signed with Rajasthan Rajya Vidyut Utpadan Nigam Limited (RVUN) and Rajasthan Urja Vikas Nigam Limited (RUVNL) in the presence of Vasundhara Raje, Chief Minister of Rajasthan in Jaipur on 11th January, 2017.
The organisations shall execute Binding Agreements based on the detailed due diligence being underway.
It may be noted here that AES India, Adani Power, Tata Power-ICICI were earlier in race for acquiring these power projects in Rajasthan.
A statement from the Rajasthan government said that eventually two more units of 660 MW each will be transferred to NTPC after their completion.
“After transfer of Chhabra thermal power plant to NTPC, the state government will receive equity as per latest valuation, and the losses being incurred from Chhabra will stop after transfer of the plant and debt liabilities of the state government shall also be reduced,” it added.