NTPC, Bhel to raise authorised share capital of JV to Rs 750 crore
The newly set up NTPC-Bhel Power Projects Pvt Ltd (NBPPL) is all set to kick off its engineering and power equipment business by enhancing its authorised share capital from Rs 5 crore to Rs 750 crore.
By Dheeraj Tiwari & Subhash Narayan, ET Bureau |
NEW DELHI: The newly set up NTPC-Bhel Power Projects Pvt Ltd (NBPPL) is all set to kick off its engineering and power equipment business by enhancing its authorised share capital from Rs 5 crore to Rs 750 crore. The development comes at a time when several power projects are getting delayed and credit flows to the sector is squeezed.
Earlier, the power ministry had directed the two promoters, NTPC and Bhel, to expedite the operationalisation of the joint venture as any delay would impact the business plans of the company. The two public sector undertakings (PSUs) will raise their investment to Rs 100 crore each in the joint venture company from the initial investment of Rs 2.5 crore each.
���Apart from these investments, the company will further raise Rs 300 crore from other equity partners and the remaining amount (Rs 600 crore) through debt. Already we are in talks with companies such as ICICI Venture, Larsen & Toubro and IL&FS to sell 50% stake in the company,��� said a senior Bhel official who did not wish to be named.
The NBPPL board plans to establish a manufacturing capacity of 5,000 mw per annum by 2014-15 and has approved the first phase of the joint venture���s business plan with a capital outlay of Rs 1,200 crore. ���It has been appraised by our consultant IFCI that a capital investment of Rs 1,402 crore is a viable proposition.
We���ll be soon zeroing in on a private player to come on board,��� the official said. The company will further invest around Rs 6,000 crore in the next five years to expand its operations.
The joint venture company has also directed the two promoters to allocate two engineering, procurement, construction (EPC) jobs to the company at the earliest. While Bhel has already identified a 750 mw turnkey project of ONGC that will be transferred to NBPPL, NTPC has indicated that it will transfer either its Shaktinagar or Vindhyachal project to the company.
Earlier, the power ministry had directed the two promoters, NTPC and Bhel, to expedite the operationalisation of the joint venture as any delay would impact the business plans of the company. The two public sector undertakings (PSUs) will raise their investment to Rs 100 crore each in the joint venture company from the initial investment of Rs 2.5 crore each.
���Apart from these investments, the company will further raise Rs 300 crore from other equity partners and the remaining amount (Rs 600 crore) through debt. Already we are in talks with companies such as ICICI Venture, Larsen & Toubro and IL&FS to sell 50% stake in the company,��� said a senior Bhel official who did not wish to be named.
The NBPPL board plans to establish a manufacturing capacity of 5,000 mw per annum by 2014-15 and has approved the first phase of the joint venture���s business plan with a capital outlay of Rs 1,200 crore. ���It has been appraised by our consultant IFCI that a capital investment of Rs 1,402 crore is a viable proposition.
We���ll be soon zeroing in on a private player to come on board,��� the official said. The company will further invest around Rs 6,000 crore in the next five years to expand its operations.
The joint venture company has also directed the two promoters to allocate two engineering, procurement, construction (EPC) jobs to the company at the earliest. While Bhel has already identified a 750 mw turnkey project of ONGC that will be transferred to NBPPL, NTPC has indicated that it will transfer either its Shaktinagar or Vindhyachal project to the company.
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