NTPC signs MoU for renewable power venture

Indian state-run power firm NTPC Ltd. has signed a memorandum of understanding with Asian Development Bank to set up a joint venture company for renewable power generation, the company said.

NTPC and other government entities will hold up to 50% in the joint venture, to be established with other strategic investors who will hold the remainder.
ADB is expected to acquire 20% at a later stage, NTPC said in a statement late on 23 July. Financial details were not diclosed.Over the next three years, the joint venture company will hold a portfolio of about 500 mw of renewable generation.

Initially, it will focus primarily on wind power and mini and microhydroelectric power projects. It may also include other renewable power generation resources such as solar, geothermal and bio fuel projects, it said.

Tata Power to raise Rs 14000cr to fund Mundra proj

Tata Power Company (TPC), the country's biggest private power utility, will raise up to Rs 14,000 crore in loans to fund the Rs 18,000 crore ultra mega power project at Mundra in coastal Gujarat.

The company has appointed SBI Caps as head arranger for the funds, S Ramakrishnan, the company's executive director (finance), said.The remaining Rs 4,000 crore would be funded by the company through internal resources.

Besides, the company is also in talks with Asian Development Bank (ADB) and International Finance Corporation (IFC) for raising a part of the Rs 14,000 crore.

The Tata group company is also considering the option of having the project part-funded by export credit agencies.

Fenosa eyes 10% Petronet stake

Spanish power group Union Fenosa may pick up 10% equity in Petronet LNG Ltd (PLL). The deal may come through the foreign currency convertible bond (FCCB) route. PLL was planning to float a $100-million FCCB issue.

Petronet sources said a Union Fenosa team visited its Dahej LNG import terminal in Gujarat a few months back. The team may come for due diligence again, they added.However, with regard to FCCB route, PLL may have to take a fresh government approval for the issue since the previous approval has expired.

Union Fenosa is present in 12 countries with significant interests in the gas business.

PLL is a joint venture company promoted by Bharat Petroleum Corporation, GAIL India, Indian Oil Corporation and Oil & Natural Gas Corporation. These firms hold 50% in the venture (12.5% each), floated to build and operate the country’s first LNG terminal at Dahej.

With an authorised equity of Rs 1,200 crore, the company’s other shareholders include Gaz de France (10%) and Asian Development Bank (5.2%). The remaining 34.8% equity is held by the public.

Read more in The DNA Money article.