With level playing field you can't compete with NTPC, says CMD

Taking a dig at private sector competitors to whom it lost the bids for Ultra Mega Power Projects, state-owned NTPC has said it is an ethical company and can overcome any competitor on a level playing field.

"We cannot go and just start an IPO and start say with a Rs 10 equity share at a premium of Rs 450-460. If a sort of level playing field is given to us, we will definitely compete," NTPC Chairman and Managing Director T Sankaralingam told PTI when asked about the PSU losing all the UMPP contracts.

He, however, clarified that he was not speaking about any specific company. "I know a private company other than Reliance Power which has done this (IPO)...110 times more than its issue price. Reliance Power, which recently came with an IPO at an issue price of Rs 450 a share to mop up Rs 11,600 crore, has two UMPPs "" Sasan and Krishnapatnam "" under its belt and is eagerly awaiting bidding for five others in the pipeline.

Sankaralingam said that "if equity norms are not distorted, then we can compete with the best," and added that in a private company one has the option of straight away forgoing the fixed cost "" the cost of equity, which turns out to be a big chunk of 35 paise per unit.

Asked if he had approached the government and on level playing field what issues other than equity needed to be addressed, he said "as far as NTPC is concerned, ours is an ethical company. We will follow norms and if issues are addressed, I can tell you, you can not compete NTPC".