NEW DELHI: State-run power generation giant NTPC has shown interest in buying out controlling stake in the Anil Ambani-run power utilities in Delhi – BSES Rajdhani Power Ltd (BRPL) and BSES Yamuna Power Ltd (BYPL). In a letter to the Secretary, Delhi Electricity Regulatory Commission, (a copy of which is with Express), NTPC said it is “keen to explore opportunities for acquiring 51 per cent stake in BRPL and BYPL, which are on sale, provided the equity sale is done in a transparent manner.”
The two power distributors run by Reliance Anil Dhirubhai Ambani Group (ADAG) was up for sale, said sources, as the company has been dragged down by heavy debt. Among others, Torrent, Greenko and Italy’s Enel had given in non-binding offers and were involved in due diligence of the two firms. However, sources said their understanding was that most of the buyers were looking at picking up the distributing firms on the cheap.
As part of its restructuring plan to pare down debt, Reliance ADAG sold off the Mumbai city power distribution business to Adani Transmission for Rs 18,800 crore in 2018.NTPC is mainly a thermal power producer which has in recent years forayed into producing power from gas-based, hydel, nuclear and renewable energy sources.
However, getting into distribution is new for the country’s largest power producer. Interestingly, NTPC in its letter has said “we have learnt from media sources that Reliance ADAG wants to divest 51 per cent” in the two entities, which would seem to indicate that the bid is an unsolicited. A copy of the letter has been sent to the Joint Secretary, who holds majority shareholding in the power gian
NTPC keen on exploring more acquisitions to boot
Officials also said that state-run NTPC would also be looking at buying utilities which the central government wants to sell off in other union territories to expand its power distribution business.