State-owned NTPC has entered the race to acquire a majority stake in Reliance Infrastructure-led BSES Yamuna and Rajdhani, which is the electricity distribution company (discom) in Delhi.
Sources privy to the developments told CNBC-TV18 that NTPC has written to Delhi Electricity Regulatory Commission (DERC) expressing interest in the majority buyout.
Also read:
Delhi-based BSES Yamuna and Rajdhani are owned by Reliance Infrastructure with 51 percent stake and 49 percent are owned by the Delhi government. In 2002, discom business that was run by the Delhi government was privatised by way of licensing under the Public-Private Partnership (PPP) model.
"NTPC has decided to foray into the distribution sector and is keen on acquiring the distribution assets. It has submitted that NTPC is keen to explore opportunities for acquiring a 51 percent stake in BSES Yamuna and Rajdhani, which are on sale, provided the equity sale is done through a transparent process," wrote NTPC to DERC.
NTPC is yet to respond to written query sent from CNBC-TV18.
Also read: Power distribution companies in Delhi to compensate consumers for unscheduled electricity failure
Sources in the know told CNBC-TV18 that acquisition of a majority stake in BSES discom business will help NTPC in forwarding integration as it already supplies about 70 percent of discom's electricity requirement from various sources.
The deal value is expected to be around Rs 5,000 crore and KPMG is the deal advisor. Torrent Power, Greenko and Italy-based Enel have already submitted non-binding interest for the majority buyout.
Reliance Infrastructure-led BSES Yamuna caters to central and east Delhi, BSES Rajdhani supplies electricity in south and west Delhi. As of March 2020, revenue stood at Rs 15,250 crore and has a debt of about Rs 1,900 crore. It is also pertinent to note that the license for a joint venture between Reliance Infrastructure and the Delhi government ends in 2029.
Check out our in-depth Market Coverage, Business News & get real-time Stock Market Updates on CNBC-TV18. Also, Watch our channels CNBC-TV18, CNBC Awaaz and CNBC Bajar Live on-the-go!
Delhi CM Kejriwal meets AAP MLAs for first time after being released on bail
May 12, 2024 10:01 AM
Telangana Lok Sabha elections 2024: Asaduddin Owaisi to Bandi Sanjay Kumar, a look at key candidates
May 11, 2024 3:32 PM
Lok Sabha elections 2024: Hyderabad to Kadapa, key seats in fourth phase
May 11, 2024 2:54 PM
Telangana Lok Sabha elections 2024: List of BRS candidates
May 11, 2024 1:55 PM