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NTPC to Buy out Fifty Percent Equity in Meja Power Project

NTPC is close to buying 50 percent equity in 1,320 MW Meja Thermal Power Project. The Meja Urja Nigam (MUNPL) is a 50:50 joint venture (JV) between NTPC and Uttar Pradesh Rajya Vidyut Utpadan Nigam in Allahabad, the memorandum of understanding (MoU) for which was signed in 2007.

 

The first unit of 660 MW has already been commissioned and the second unit is likely to be ready by March 2019. NTPC has been keen on acquiring stake in the project as it will bring the project entirely under its balance sheet and that would make it easier for it to raise cheaper loans.

 

The company had given a proposal to the Uttar Pradesh government regarding the same more than a year ago, after which the state government appointed PFC Consultancy to prepare a report on the stake sale.

 

The government has invested approximately Rs 1,209 crore and thus NTPC must pay Rs 1,265 crore to the state government for the investment made by it or give a rebate of 17 paisa per unit of power.

 

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