NTPC signs $1.5bn deals to acquire stakes in NEEPCO and THDC IndiaTagged with: India | NEEPCO | NTPC | THDC India | Uttar Pradesh
India’s state-owned power producer the National Thermal Power Corporation (NTPC) has signed agreements with the Indian President Ramnath Kovind to acquire stakes held by the federal government in two regional power utilities North Eastern Electric Power Corporation (NEEPCO) and THDC India from the Indian government for a combined sum of INR115 billion ($1.53 billion).
NTPC will acquire 100% stake in NEEPCO for INR 75 billion ($1 billion) and 74.496% stake in THDC India for INR 40 billion ($530 million).
Established in 1976, NEEPCO is a Mini-ratna Category I central public sector enterprise that generates and supplies power across North-Eastern India. Headquartered in Meghalaya, NEEPCO has an installed capacity of about 1.46GW which comes from seven hydropower plants (925MW), three thermal power plants (527MW), and a solar power plant (5MW).
NEEPCO expects to shortly commission the 600MW Kameng hydroelectric power project in Arunachal Pradesh, which is being developed in the West Kameng district.
NTPC, in a statement to the Bombay Stock Exchange, said: “The takeover of NEEPCO i.e. primarily a hydropower generating company would not only give a foothold to NTPC in the northeastern regions but also help unlock potential synergies with many of its existing projects. Further, NTPC will also gain through deep domain expertise in developing hydropower projects in difficult terrains such as the North-eastern region of the country.”
THDC India, which is the other power utility being acquired by NTPC predominantly generates hydropower. Currently, headquartered in Uttarakhand, the Mini-ratna Category I central public sector enterprise was established in 1988 by the Indian government and the Uttar Pradesh government, which holds the remaining stake of 25.504%.
The company has 1.5GW in operational portfolio, comprising 1.4GW of hydropower and 113MW of wind energy. THDC India is said to have 2.83GW of capacity in its pipeline, which comprises projects under various stages of development. Included in this are 1.32GW thermal power project, 1.46GW hydropower projects, and 50MW solar power project.