Companies

NTPC shells out ₹11,500 crore to buyout Centre’s stake in NEEPCO and THDC

Our Bureau New Delhi | Updated on March 27, 2020 Published on March 27, 2020

The Centre will be getting ₹ 11,500 crore by divesting its stake in North Eastern Electric Power Corporation Limited (NEEPCO) and THDC to NTPC Limited. The company said that it would be acquiring 74.496 per cent in THDC for ₹7,500 crore and 100 per cent of NEEPCO for ₹4,000 crore.

The NTPC board had given in-principal approval for this acquisition on January 27, 2020. This had followed a nod of the Cabinet Committee on Economic Affairs (CCEA) in its meeting held on November 21, 2019.

THDCIL has an operational portfolio of 1513 MW comprising hydropower generation portfolio of 1,400 MW and wind power generation portfolio of 113 MW. Further, it has projects with an aggregate capacity of 2,838 MW (1,468 MW – hydropower projects, 50 MW – solar power project and 1,320 – thermal power project) under various stages of implementation.

NEEPCO has an operational portfolio of 1457 MW comprising hydropower generation capacity of 925 MW, gas-based generation capacity of 527 MW and Solar generation capacity of 5 MW. Additionally, 600 MW Kameng Hydro Electric Project is likely to be commissioned soon.

BusinessLine reported in December 30 that NTPC is planning to complete the buyout by the end of FY20 in a bid to aid the Centre that is struggling to meet its disinvestment targets.

On February 18, 2020, had granted an exemption to NTPC from obtaining audit committee and shareholders’ approval for related party transaction under Regulations 23(2) and 23(4) of LODR Regulations. The Competition Commission of India had granted its permission for these transactions on February 24, 2020 under Section 31(1) of the Competition Act, 2002.

Published on March 27, 2020
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