To develop its generation capacity further, cash rich National Thermal Power Corporation (NTPC) is looking to acquire power projects that are in distress, said the company Chairman and Managing Director Arup Roy Choudhury in Mumbai. However, he said that the company will acquire those projects which have used only the BHEL's equipment. Before considering projects that have used Chinese power equipments, NTPC would be cautious and examine it closely, he added.
NTPC has a cash of Rs 18,738 crore and mulling to acquire power projects that are in financial difficulties.
NTPC's total installed power capacity was 41,184 mw as on July 31 and 20,064 mw of capacity was under construction, the company said.
The national power generator is planning a capital expenditure of Rs 20,200 crore for 2013-14 fiscal to add its power production capacity. It added 4,170 mw in 2012-13, its highest ever capacity addition. Private companies like JSW Energy and Reliance Power have recently stated that they are interested to buy distressed assets.
Such a strategy of buying installed projects would help these companies to add capacity at lesser cost than the cost of setting up a new project, sayd experts.