Construction and infrastructure company NCC Ltd has reportedly sold a part of the stake in the 100 MW hydro power project in Himachal Pradesh to an Abu Dhabi-based company.
When asked about this development, Y.D. Murthy, Executive Vice-President, Finance, NCC, said, “The company is in discussions with some investors and it is not possible to comment on such developments.”
NCC is seeking to sell some of the matured assets, such as road projects and hydel power plant investments, to trim its debt.
There have been reports that Taqa, the Abu Dhabi-based Government entity, has picked up stake in the Rs 600-crore project, which has seen some cost escalation.
According to the contractual obligation, the developer has to manage the project for at least six months from the date of commercial operations. The run-of-the-river hydel power project has been implemented through a special purpose vehicle where IL&FS Engineering is a partner.
ROAD PROJECTS
The Hyderabad-based company, which is also in talks to divest stake in some of the road projects, expects to close a couple of deals before the end of the current financial year.
It has also divested stake in some land parcels.
Murthy said that the company expects to end the financial year with a growth of about 15 per cent. “We expect a better year ahead as there are signs of interest rates softening, a major problem for infrastructure companies,” he said.
rishikumar.vundi@thehindu.co.in
Keywords: Construction and infrastructure company NCC Ltd, 100 MW hydro power project in Himachal Pradesh, Taqa, the Abu Dhabi-based company, Y.D. Murthy, Executive Vice-President, Finance, NCC
Comments:
NCC still has to pay its contractors, Over a payment of 20cr are due and
one of contractor has dragged NCC into Himachal High Court for not
clearing their dues.
This was an extremely attractive project which should have been developed by State Government. It was allotted to Satyam/Maytas and delayed thereafter. HPSEBL , i.e. Himachal Pradesh State Electricity Board Limited could have developed it at a lower cost as it is adjacent to HPSEBL projects , Bhaba(120MW) and Ghanvi(22.5MW).
Incidentally, this project was initially allotted as a 3MW project to Western Paques whihc could not do it. It was subsequently realised that the project location is suitable for a larger project as it has very high precipitation and a drop of nearly 1500 Meters in a length of 5 Kilometres some of which could not be utilised due to it falling in the sanctuary area. It is a matter of some regret that this project could not be larger due to sanctuary and is now being sold to entities outside India by Indian Private Sector. Is this how the family silver be disposed off.
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