NTPC will pick up 74% in the project, while JBVNL—which owns and operates the project—will hold the rest
A file photo of NTPC plant in Gandhar, Bharuch, Gujarat.
Mumbai: State-run power producer NTPC Ltd on Sunday said it has agreed to form a joint venture with the Jharkhand government to revive the Patratu thermal power station and expand its capacity from 700MW to 4,000MW.
NTPC will pick up 74% in the project, while the Jharkhand Bidyut Vitaran Nigam Ltd (JBVNL)—which owns and operates the project—will hold the rest.
With the joint venture, NTPC hopes to raise the unit’s plant load factor from 15% to 82% by improving operational efficiency.
NTPC did not disclose any investment figure expected to be made in this power plant.
The move is part of the government’s efforts to revive existing power plants running at low utilization levels.
NTPC is also on the lookout to acquire distressed power assets, a process it started more than a year back. However, the company has not been able to finalise any deal till date.
New Central Electricity Regulatory Commission regulations which now reward capacity utilization more than plant availability. It is also expected to impact NTPC’s profitability in case of lower plant load factor or utilization for its power plants.
Source: Mint; 03 May 2015