NTPC

NTPC – The New Suitor For Reliance Infrastructure’s Delhi Assets

NTPC Ltd has evinced interest to acquire Reliance Infrastructure Ltd’s Delhi electricity distribution businesses, said a person aware of the development.

This comes in the backdrop of Enel Group of Italy, Torrent Power Ltd and Greenko Group submitting non-binding offers on Friday to buy Reliance Infrastructure Ltd’s 51% stake each in BSES Rajdhani Power Ltd (BRPL) and BSES Yamuna Power Ltd (BYPL), that supplies electricity to around 4.4 million customers in the national capital.

According to a communication dated 26 May to Delhi State Regulatory Commission (DERC) reviewed by Mint, state run NTPC said, “We have learnt from media reports that Reliance ADAG wants to divest its 51% stake in BSES Rajdhani Power Ltd (BRPL) and BSES Yamuna Power Ltd (BYPL).”

“We would like to inform you that NTPC has decided to foray into distribution sector and is keen on acquiring the distribution assets,” the communication said.

Anil Dhirubhai Ambani Group, which owns Reliance Infrastructure, is trying to sell assets to cut its debt. KPMG is managing the stake sale process.

While announcing the March quarter earnings on 8 May, Reliance Infrastructure said it “aims to be zero debt in the next financial year based on liquidity events”.

Reliance Infrastructure sold its Mumbai city power distribution business to Adani Transmission Ltd for Rs18,800 crore in August 2018.

The total regulatory assets’ claims of BRPL and BYPL are to the tune of around Rs40,000 crore.

These power distribution utilities are some of the most stable and lucrative assets in India, with the national capital reporting the lowest aggregate technical and commercial loss of 9.7% in the country.

Reference- livemint, Economic Times, Business Standard