(ET)
NTPC Ltd, country’s largest power producer, plans to acquire operational coal-based power stations but only those built with Indian, not Chinese, equipment and with lower generation costs, which will keep many private plants out.
The company has invited bids from promoters, lenders or financial intermediaries offering their domestic coal-based power plants. The company had earlier shelved buyout plans after exploring about 50 proposals due to concerns on valuations, a company executive said. “The fresh tender does not propose to value the assets. It will be based on bidding by the interested promoters. In no case the per megawatt cost should be more than Rs 3.5-4 crore,” the official said.
“The buyout for us will be as good as placing a turnkey contract. The local content clause will keep Chinese equipment at bay,” he said, adding the tender does not press the plants to have assured coal supply or power purchase agreements.
