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NTPC gains after approving energy projects

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Capital Market
Last Updated : Feb 27 2015 | 12:02 AM IST

NTPC rose 0.17% to Rs 146.25 at 10:40 IST on BSE after the board accorded the investment approvals for the Khargone Super Thermal Power Project in Madhya Pradesh and for setting up 10000 megawatts of renewable energy projects.

The company made the announcement after market hours yesterday, 25 February 2015.

Meanwhile, the S&P BSE Sensex was down 58.98 points or 0.2% at 28,942.73.

On BSE, so far 52,043 shares were traded in the counter as against average daily volume of 3.48 lakh shares in the past quarter.

The stock hit a high of Rs 147.60 and low of Rs 146 so far during the day. The stock had hit a 52-week high of Rs 168.80 on 6 May 2014. The stock had hit a 52-week low of Rs 110.90 on 4 March 2014.

The stock had outperformed the market over the past one month till 25 February 2015, rising 2.85% compared with 0.93% fall in the Sensex. The scrip had also outperformed the market in past one quarter, gaining 4.29% as against Sensex's 2.36% rise.

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The large-cap of thermal power generation firm has equity capital of Rs 8245.46 crore. Face value per share is Rs 10.

NTPC said that its board at its meeting held yesterday, 25 February 2015, has accorded the investment approval for the Khargone Super Thermal Power Project (2x660 megawatts) in Madhya Pradesh at an appraised current estimated cost of Rs 9870.51 crore, subject to Environment Clearance of Ministry of Environment and Forests.

Further, the board has also accorded approval to the proposal for NTPC's commitment to Government of India for setting up 10000 megawatts of renewable energy projects during the next five years, NTPC said in a statement.

Separately, the Union Cabinet chaired by the Prime Minister, Narendra Modi, yesterday, 25 February 2015, gave its approval for the implementation of the scheme for setting up of 15,000 MW of Grid-connected Solar PV power projects under the National Solar Mission through NTPC/ NTPC Vidyut Vyapar Nigam (NVVN) in three tranches namely, 3000 MW under Tranche-l under mechanism of bundling with unallocated coal based thermal power and fixed levellised tariffs, 5,000 MW under Tranche-ll with some support from Government to be decided after getting some experience while implementing Tranche-l and balance 7,000 MW under Tranche-Ill without any financial support from the Government.

Successful completion of additional 15,000 MW capacity of Grid-connected solar PV power generation projects, mainly in the private sector, with largely private investment, under the National Solar Mission would accelerate the process of achieving grid tariff parity for solar power and also help reduce consumption of kerosene and diesel, which is presently in use to meet the unmet demand.

The 1000 MW capacity out of the 3000 MW under the bundling scheme will be set up on land already identified in Andhra Pradesh. The balance 2000 MW capacity under the bundling scheme will be allotted in other interested States that come forward.

It is estimated that implementation of Tranche-l of the scheme will entail total investment of over Rs 18000 crore, all of which will be met by project developers, mainly private.

NTPC's net profit rose 7.4% to Rs 3074 crore on 1.3% decline in total income to Rs 19339.37 crore in Q3 December 2014 over Q3 December 2013.

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First Published: Feb 26 2015 | 10:33 AM IST

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