India’s largest power utility NTPC has acquired a majority stake in THDC India Limited (THDCIL) (was a Joint Venture of Govt. of India and Govt. of Uttar Pradesh) and completed buyout of North-Eastern Electric Power Corporation Limited (NEEPCO).
Scale of NTPC’s Acquisitions of NEEPCO and THDCIL
The agreements were executed on 25th March and the acquisitions were completed on 26th March 2020 for total value of Rs.11,500 Cr. Post-acquisition THDCIL and NEEPCO have become subsidiaries of India’s largest power producer NTPC.
Scope of NTPC’s THDCIL Acquisition
NTPC has acquired 2.73 crore equity shares, representing 74.496% of share capital in THDC India Limited. Value for this acquisition is approx. Rs. 7,500 Cr.
As of 31st December 2019, THDCIL’s total installed capacity from operational power projects was 1,513 MW, which included 2 hydro (1400 MW) and 2 wind power generating plants (113 MW). The aggregate capacity of THDCIL, including projects at various stages of execution is 2,838 MW.
Scope of NTPC’s NEEPCO Acquisition
NTPC has acquired 360.98 crore equity shares, representing 100% of share capital in NEEPCO. Value of this transaction is approx. Rs. 4,000 Cr.
As of 31st December 2019, NEEPCO’s total installed capacity from operational power projects was 1,457 MW, with 7 hydro (925 MW), 3 gas based thermal (527 MW) and 1 solar power plant (5 MW). Another 600 MW hydro-electric power plant is likely to be commissioned soon.
New Installed Capacity of NTPC
As per the press release of NTPC dated 28th March 2020 NTPC Ltd.’s total installed capacity at the group level after the two acquisitions stands at 62,110 MW.
About NTPC Ltd: It is an Indian public sector undertaking, engaged in the business of generation of electricity and allied activities. NTPC is India’s largest power producer. Formerly it was known as National Thermal Power Corporation Limited.
THDCIL is a Category-I, Schedule A ‘Mini Ratna’ Central Public Sector Enterprise (CPSE), involved in planning, design, construction, operation & maintenance of power generation projects of hydro, other renewable and thermal energy.
NEEPCO is a Category-I, Schedule A ‘Mini Ratna’ CPSE. It is engaged in planning, design, construction, generation, operation & maintenance of power stations of the North Eastern Region of India.