NTPC To Acquire Rajasthan’s Chabbra Power Plant

NTPC Ltd, country’s largest power producer, has signed MOU with Rajasthan State government to acquire its Chabbra Thermal Power plant.

Deal was finalised between NTPC Ltd and Rajasthan Rajya Vidhyut Utpadan Nigam (RUVNL) on an asset-for-equity basis. RUVNL will transfer Chabbra plant along with its two under-construction units after their scheduled commissioning.

Chabbra Thermal power plant is one of the RVUNL’s coal-fired power plants. The plant is located at Chowki Motipura of tehsil Chabbra in Rajasthan’s Baran district. The planned capacity of the plant is 2320 MW, out of which 1000 MW (4×250 MW) is operational while remaining 1320 MW (2x660MW) is under construction.

Earlier, AES India, Adani Power, Tata Power-ICICI were in the race for acquiring the Rajasthan power project, eventually NTPC Ltd managed to edge out its opponents and get the deal finalised.

The Deal was agreed among NTPC Ltd, Rajasthan Rajya Vidhyut UtpadanNigam (RUVNL), state government’s power generating utility, and state’s power trading firm Rajasthan Urja Vikas Nigam Ltd.

NTPC Ltd, one of the country’s largest power generating utility will help cut losses incurred from Chabbra plant and debt liabilities of state government shall also be reduced. NTPC will assist Chabbra plant to increase its efficiency; in turn, will produce low tariff electricity for customers.