NHPC seeks to buy out co-promoter in PTC

MOVE WILL HELP NHPC EXPAND POWER TRADING BUSINESS; CO WON'T ACQUIRE FINANCE UNIT

- Rituraj Baruah

NEW DELHI: India's largest hydropower generator NHPC Ltd is keen on buying out its public sector co-promoters in power trading firm PTC India Ltd, three people aware of the plan said.

The Union power ministry officials will meet top executives from the four PSU promoters on Friday when the PTC India stake sale is likely to be discussed, one of the three people said on the condition of anonymity.

Currently, NHPC, NTPC Ltd, Power Grid Corp. of India Ltd and Power Finance Corp. Ltd hold about 4.05% each in PTC India, totalling 16.2%.

The four PSUs had appointed ICICI Securities as merchant banker in 2022 for the transaction, after the power ministry approved their exit plan.

"The companies have been eyeing an exit for some time now and are expecting to carry out the stake sale by the end of this financial year," the person cited above added.

Queries emailed to NHPC, NTPC, PowerGrid and PFC remained unanswered.

Acquiring PTC India would expand the power trading share of NHPC, which already has a licence for this purpose.

The move may also help since NHPC is involved in hydro projects in Nepal and Bhutan, countries which export power to India.

Having a power trading company of its own would help NHPC in efficient trading and supply of green power.