NTPC - Minimum Impact Of Power Purchase Agreement Relinquishment Beyond 25 Years: ICICI Securities
Smoke rises from a chimney as electricity pylons stand at a thermal power station in India. (Photographer: Dhiraj Singh/Bloomberg)

NTPC - Minimum Impact Of Power Purchase Agreement Relinquishment Beyond 25 Years: ICICI Securities

BQ Blue’s special research section collates quality and in-depth equity and economy research reports from across India’s top brokerages, asset managers and research agencies. These reports offer BloombergQuint’s subscribers an opportunity to expand their understanding of companies, sectors and the economy.

ICICI Securities Report

Ministry of Power has issued a notification which enables discoms to either continue or exit the power purchase agreement after completion of its term (beyond 25 years or as specified in the PPA) and allow flexibility to generators to sell the relinquished power in any mode after state’s/discom’s exit from PPA.

The state will have to provide six months advance notice and clear all past dues before exiting.

As per our analysis, although 16.8 gigawatt of capacity of NTPC Ltd. is older than 24 years, only two plants - Dadri Coal (840 megawatt) and Unchahar (420 megawatt) - have variable cost more than Rs 3/kilowatt-hour (as of March 2021 Merit Order Dispatch data).

Click on the attachment to read the full report:

ICICI Securities Power Sector NTPC Compnay Update.pdf

DISCLAIMER

This report is authored by an external party. BloombergQuint does not vouch for the accuracy of its contents nor is responsible for them in any way. The contents of this section do not constitute investment advice. For that you must always consult an expert based on your individual needs. The views expressed in the report are that of the author entity and do not represent the views of BloombergQuint.

Users have no license to copy, modify, or distribute the content without permission of the Original Owner.

BQ Install

Bloomberg Quint

Add BloombergQuint App to Home screen.