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.
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.