August 25, 2021 02:45 PM
India’s largest power generation utility NTPC Ltd is in talks with state-run Steel Authority of India Ltd (SAIL) to sell its stake in NTPC-SAIL Power Co. Pvt. Ltd (NSPCL), the 50:50 joint venture to the steel maker, two people aware of the development said, seeking anonymity.
The development comes at a time when NTPC is pivoting towards green energy with a growing focus on environmental, social and governance (ESG) investing. “NTPC is looking to offload its stake in NSPCL and is in talks with SAIL,” said one of the two people cited above. Queries to the spokespersons of NTPC and SAIL on Thursday afternoon remained unanswered till press time.
NSPCL, which was formed in March 2001, supplies electricity to Chhattisgarh, besides Union territories of Dadra and Nagar Haveli, and Daman and Diu, and SAIL. The JV took over the captive power plants of SAIL’s steel plants at Durgapur in West Bengal, Rourkela steel in Odisha and Bhilai in Chhattisgarh.
NTPC Ltd is also preparing for initial public offerings (IPOs) for its clean energy subsidiaries NTPC Vidyut Vyapar Nigam Ltd (NVVN) and NTPC Renewable Energy Ltd (NTPC REL) and has appointed merchant bankers to run the process, Mint had reported. It has also floated a global tender for setting up a 1GWh grid-scale battery storage system.
Torrent Power has placed the highest bid for power distribution companies (discoms) of Dadra and Nagar Haveli, and Daman and Diu as part of the discom privatization exercise for the eight Union territories.