The Rajasthan government has offered to sell its power projects to state-owned NTPC Ltd in an attempt to reduce debt.
The offer by the Rajasthan government assumes significance as NTPCplans to acquire stranded assets in India.
Rajasthan has a power generation capacity of 16,235.50 megawatts (MW), with 3,539.65MW capacity under construction and an additional 34,243MW sanctioned for the 13th Plan (2017-22).
Of these, the Rajasthan Rajya Vidyut Utpadan Nigam Ltd, the state government-owned generation arm, has an installed capacity of 5357.35MW.
State electricity boards (SEBs) are laden with a debt of Rs.3.04 trillion, of which Rajasthan SEB accounts for Rs.81,000 crore.
“The Rajasthan government has offered us their generation assets. It’s now for us to do the due diligence and choose the ones we want to acquire,” said a senior NTPC executive, requesting anonymity.
Another NTPC executive who also didn’t want to be identified confirmed the development.