NTPC may acquire NEEPCO through debt; awaits clarity on THDC stake buying

NTPC, which is in the process of acquiring the central government’s stake in two hydro power firms, THDC and NEEPCO, is likely to depend on external funding to do so, not internal cash flow.

The thermal behemoth’s cash and equivalents has reduced by 80 per cent in the past four years and its debt risen by 58 per cent in this period. Company executives said they would evaluate several funding streams, including the bond market. 

In November, the Cabinet Committee on Economic Affairs approved strategic disinvestment of the Centre’s entire stake in THDC India and NEEPCO. It was also decided to sell