NTPC plans to acquire plant in Lebanon

NTPC India, the public sector power major, has firmed up plans of acquiring a mid-sized power plant in Lebanon. It is expected to bid for acquiring a stake in the Lebanon-based company shortly. This would be NTPC's first overseas acquisition and second overseas venture.

Officials from NTPC confirmed the development but refused to divulge any other details. "We have not bid for the plant as yet, and would not like to share further details until we have actually bid for the plant," said an official from the company when asked on the issue.

This would be the second overseas venture of NTPC after Sri Lanka, where it was erecting a 300 mw coal-based thermal power plant in Sri Lanka at an investment of Rs 1,500 crore.

The public sector power major is also looking at the potential of managing power plants located in foreign lands as well as provide consulting services in domestic and international markets.

At present, the power major manages and operates power plants in Middle East. Officials from the company said that NTPC was also looking at opportunities in other countries and would take up stakes if required.

"Subscribing to equity stake would depend on the laws of the land and the agreement we enter into with these foreign power companies," said officials from NTPC. Officials said that it plans to expand its consultancy operations and leverage its experience in the power sector to expand these operations both in India and abroad.

"We also believe that involvement in consultancy projects abroad will provide us exposure to international best practices in our country and in the new businesses we intend to enter," the executive explained.

In a parallel development, NTPC is looking at floating a separate company that would own and undertake mining activities to meet its coal requirement. NTPC requires around 95 million tonne of coal a year.

It has requested the central government to allot a few coal blocks in Bihar, Jharkhand and West Bengal. Blocks were expected to be allotted to NTPC in the next three to four months.

The company has also asked for coal mines from Coal India Ltd for captive consumption and has been allotted a mine in Orissa, while another is yet to be handed over.

It intends to initiate mining activities as soon as both the blocks are handed over.

Sources close to the development also said that mining activities being undertaken by NTPC on CIL's coal mines could also be transferred to the new company once it was formed.