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The MoU envisages transfer of Barauni Thermal Power Station and transfer of Bihar State Power Generation Company’s equity in Kanti Bijlee Utpadan Nigam Ltd & Nabinagar Power Generating Company to NTPC.
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Public Sector Undertaking NTPC has signed a pact with Bihar government and its power utilities to acquire their entire stake in two joint ventures Nabinagar Power Generating Company (NPGC) and Kanti Bijli Utpadan Nigam (KBUNL), and to buy Barauni Thermal Power Station.
The company said in a statement that, “A Memorandum of Understanding (MoU) was entered amongst Govt. of Bihar (GoB), Bihar State Power Holding Co. Ltd. (BSPHCL), Bihar State Power Generation Co. Ltd (BSPGCL), North Bihar Power Distribution Company Ltd. (NBPDCL), South Bihar Power Distribution Company Ltd. (SBPDCL), Bihar State Power Transmission Company Ltd (BSPTCL) and NTPC Ltd at Patna for performance improvement of power sector in the state of Bihar.”
The MoU envisages transfer of Barauni Thermal Power Station (720 MW) and transfer of Bihar State Power Generation Company’s (BSPGCL) equity in Kanti Bijlee Utpadan Nigam Ltd (KBUN) & Nabinagar Power Generating Company (Pvt) Ltd (NPGC) to NTPC.
The Barauni thermal plant is located at Begusarai district in Bihar. It has comprised of stage-I (2x110 MW) (under advance stages of R&M) and stage-II (2x250 MW) (under construction).
Further, the company is expected to complete the balance works and achieve sustained commercial operation of units in a time bound manner.
Besides, NPGC is a 50:50 Joint Venture (JV) company of NTPC and BSPGCL. The company is developing a 1980 MW (3x660 MW) Nabinagar Super Thermal Power Project in district Aurangabad, Bihar, which is currently under-construction.
Moreover, KBUNL is a subsidiary company of NTPC in JV with BSPGCL. Currently, NTPC and BSPGCL own 72.64 percent and 27.36 percent equity stake in KBUNL respectively.
All the three power generation facilities are envisaged to be transferred to NTPC from the effective date to be notified by state government via Statutory Transfer Scheme.
Meanwhile, the transfer of these power stations to NTPC will result in their optimal & efficient utilization, bring the tariff down and benefit the people of Bihar at large.