NTPC Drops Acquisition Plans

NTPC Drops Acquisition Plans

State-run NTPC, India’s biggest electricity producer, has shelved plans of acquiring stressed power assets in the private sector, and will instead help lenders to these debt-ridden power plants run them for a fee.

“For assets that are still under implementation, NTPC intends to assist banks complete construction of these projects and achieve commercial operations,” K Biswal, director of finance at NTPC, told reporters at the 7th Asian Mining Congress here on Wednesday.

“Earlier, NTPC was looking at taking over stressed assets from the private sector. However, now we have changed our strategy and would like of offer management services to these companies.”

Industry executives who ET spoke to said the possibility that the valuation of these stressed assets may not be accurate may have shaped NTPC’s decision, as it does not want to be hauled up for an acquisition based on these numbers. Read More…

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