NTPC, it is reportedly learnt, has dropped its plans to acquire the power distribution licences of Reliance Infrastructure Ltd, in Delhi.
Reliance Infrastructure Ltd has two power distribution companies in Delhi – BSES Yamuna Power Ltd (BYPL) and BSES Rajdhani Power Ltd (BRPL). Both these companies are joint ventures with the Delhi government. While Reliance Infrastructure owned by Anil Dhirubhai Ambani Group (ADAG) owns 51 per cent stake each in BYPL and BRPL, the Government of National Capital Territory (NCT) of Delhi holds the remaining 49 per cent.
Reports suggest that NTPC backed out of the proposal as the bidding was not being conducted by Delhi Electricity Regulatory Commission (DERC). The regulatory commission, as further learnt, was not keen on overseeing the bidding process.
Apart from NTPC, companies like Torrent Power and Greenko Group, were also keen on acquiring ADAG’s stake in BYPL and BRPL.
In May this year, NTPC had written to DERC expressing its acquiring the 51 per cent stake in BYPL and BRPL. (Read more)
Reports further indicate that NTPC assumed that the bidding process would be conducted by DERC, on the lines of what took place in Odisha.
It may be mentioned that Odisha Electricity Regulatory Commission (OERC) is in the process of privatizing the discoms – Northco, Southco, Wesco and CESU. In early June this year, Tata Power took over the management of CESU (Read more).
For ADAG, the sale of BYPL and BRPL would mean exiting from the power distribution business. In August 2018, Adani Group acquired Reliance Infrastructure’s integrated business of generation, transmission and retail electricity distribution. The deal, worth Rs.18,800 crore, was in the making since December 2017.
(Featured photograph for illustration only)
