NTPC to foray into distribution, keen to buy majority stake in ADAG's two utilities in Delhi

New Delhi: State-owned power giant NTPC has decided to foray in electricity distribution business by evincing interest to buy 51 per stake in Anil Dhirubhai Ambani Group’s (ADAG) two utilities in Delhi.

The ADAG has two discoms namely BSES Rajdhani Power Ltd (BRPL) and BSES Yamuna Power Ltd (BYPL).

#CNBCTV18Exclusive | Sources say @ntpclimited has entered the fray to acquire majority stake in @RInfraOfficial-led BSES discom biz in Delhi.

Do note, response of NTPC in this matter is awaited. pic.twitter.com/LoTu4fzMYz

— CNBC-TV18 (@CNBCTV18Live) May 27, 2020

This assumes significance because NTPC is primarily power generation company.

In a letter written to Delhi Electricity Regulatory Commission (DERC) on 26 May, 2020, the power giant said, “NTPC has decided to foray into the power distribution sector and keen on acquiring the distribution assets (BRPL and BYPL)”.

“We have learnt from media reports that ADAG wants to divest its 51 percent stake in BRPL and BYPL.”

The company also said, “NTPC is keen to explore the opportunities for acquiring 51 percent stake in BRPL and BYPL, which are on sale, provided that the equity sale is done through a transparent process”.

The speculation is rife that the number of players are keen to buy 51 per stake in the two utilities.