The Centre is planning to sell the 705 Mw Badarpur thermal power station in Delhi along with its 1,200 acre of real estate, most of which is lying idle.
While the state-owned National Thermal Power Corporation, which has been operating the plant since April 1, 1978, is likely to bid for it, government officials said Reliance Energy and Tata Power were also in the race.
| Power chase |
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Power ministry to appoint consultant for sale process Power station has 1,200 acres of real estate in Delhi Station operated at an average PLF of 85.2% during April-October 2003 |
The power ministry would appoint a consultant for preparing the bid documents soon, the officials said.
The plant is owned by the Centre and operated by NTPC under an operations and maintenance contract funded through the Budget.
"The government feels it can get good value if the power station is sold now, with both Reliance Energy and Tata Power likely to bid aggressively," an official said.
This is the first proposal by the Centre to sell a power plant owned by it. In the 1990s, even as states privatised their power boards, they kept the generating stations with them.
The Delhi government has also kept the 400 Mw Indraprastha power plant with the public sector Delhi Genco, while privatising the distribution circles.
Power produced by the Badarpur plant is transported by Delhi Transco Ltd and supplied to the Capital. According to industry sources, the 28-year-old plant will prove a worthwhile acquisition for private distribution licensees in Delhi as the power generated at the station can be supplied directly to their respective distribution areas.
The plant's 1,200 acre of prime real estate on the outskirts of Delhi made it more attractive, the officials said. Most of the land is lying idle, which can accommodate a 1,500 Mw extension plant. The station employs about 2,000 people.
NTPC had been offered the plant a couple of times earlier. The ministry of power had floated a proposal in March 2000 for selling the plant, but the idea was subsequently shelved.
The plant, which has been running efficiently since NTPC took it over 25 years ago, operated at an average plant load factor of 85.2 per cent during April-October 2003.
Reliance Energy and Tata Power have been looking at owning a generating station in and around Delhi, and both had earlier shown interest in setting up a greenfield 2,000 Mw generating station in Bawana.
