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Cash Rich NTPC Go Purchasing Stressed Power Generation Assets

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NTPC is on the prowl again. Armed with a reserve of about Rs 5,000 crore, this time the nation's largest power company intends to take over stressed power generation assets from central and state sector units. 

Source: ET

SNP Insight

NTPC’s plan to acquire stressed power generating units may create an opportunity for the struggling power developers to offload these stressed assets. This may help them to ease the financial burden on them. And also it may help NTPC to achieve its capacity addition target (12,000 MW) for 12th plan. This may reduce the investment cost, project execution time and per unit generation cost for the company. The company’s MOU of 246 Billion Units power supply in 2015-16 with government of India. This may also help these stressed power generation units in power sale. And improve their operating efficiency and balance sheet in future.

Source: SNP Infra Research