NTPC likely to bid for ultra-mega power projects - Angel Broking

NTPC Ltd. is likely to bid for two ultra-mega power projects (UMPPs) worth Rs. 20,000cr each in Odisha and Tamil Nadu according to a top company executive. However, the Chairman & MD said that they have been participating in UMPPs and will bid for such projects as and when they come. The Power Finance Corporation (PFC) is expected to invite preliminary bids for the two UMPPs this week. He also said that raising funds will not be an issue and the company would also bid aggressively for coal blocks if the government puts them on auction. It is working on coal blocks in Jharkhand, Andhra Pradesh and Odisha with total geological reserves of 3,732 million tonnes (mt) and mineable reserves of 2,035 mt. The company plans to mine around 33 mt per annum by 2017 from these blocks. The Ministry of Coal has also allocated four additional blocks to NTPC in Chattisgarh and Odisha. NTPC plans to produce nearly 100 million tonnes over the next 5-6 years to meet its fuel demand. Currently, NTPC has an installed capacity of ~41,000MW excluding its joint ventures. We maintain Buy on the stock with a Target Price of Rs. 163.

Source : Equity Bulls

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