Now, NTPC bid to buy out PTC co-promoters falters

After NHPC Ltd dropped plans to buy out its co-promoters’ stake in controversy-hit PTC India Ltd, thermal power giant NTPC Ltd pitched a similar proposal but has run into an obstacle.

- Rituraj Baruah

NHPC, India’s largest hydro-power generator, is unwilling to sell its stake in the power trading joint venture although it had, while shelving its buyout plan, said power trading was not its core business.

Apart from NTPC and NHPC, PTC's other promoters are Power Grid Corp. of India Ltd and Power Finance Corp. Ltd. The four state-run companies hold 4.05% each in PTC.

“In the past two months NTPC has offered to buy out the shares of the other promoter PSUs,” said an executive familiar with the developments.

Another executive said there had been no further movement on NTPC’s proposal. “NHPC plans to hold on to the shares in PTC India given that it has been giving good dividends,” this person said.