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This is an archive article published on July 18, 2005
NTPC sets condition to buy DPC
Seeking smooth transfer of the Dabhol power plant, state-owned NTPC HAS asked the government to delegate powers to its new JV company with G...
Written by Press Trust Of India
New Delhi | July 18, 2005 12:00 AM IST
2 min read
2 min read
Seeking smooth transfer of the Dabhol power plant, state-owned NTPC HAS asked the government to delegate powers to its new JV company with GAIL for taking control of assets of over Rs 10,000 crore besides seeking exemption from paying stamp duty.
NTPC has sought government nod in writing, yet to be given to the power major, and has brought these 8216;8216;conditions8217;8217; to the notice of the Centre for urgent implementation of these proposals.
As such, for proposed acquisition NTPC-GAIL do not have even Rs 200 crore authority, which is available for investment in joint ventures, whereas the current investment envisages acquisition of assets valued at Rs 10,036 crore.
In a letter written to Power Secretary R.V. Shahi, NTPC has said, 8216;8216;the dispensation, if proposed, may therefore authorise the board of directors of NTPC/GAIL for investment in joint venture company Ratnagiri Gas and Power Pvt Ltd to do acquisition.8217;8217;
The assets worth Rs 10,036 crore would be funded by an equity of Rs 1,500 crore with Rs 500 crore equity each by NTPC, GAIL and Indian financial institutions FIs and the remaining through loan by the the financial institutions.
On the proposed stamp duty to be paid while transferring assets first to FIs and then from FIs to NTPC/GAIL that could range between Rs 2,500-3,000 crore, NTPC has sought exemption saying the payment could make the project commercially unviable.
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