NTPC seeks coal-based power assets.

NTPC issued an expression of interest (EoI) recently, seeking to buy coal-based power plants, whether operational, commissioned, synchronised, under construction or under planning stages. The state-owned power generator wishes to use its huge cash pile to consolidate its presence as the country's largest in the sector. In a sector that has been grappling with a slowdown, the move is expected to revive the merger & acquisition (M&A) activity.

State electricity boards (SEBs), independent power producers, power plant developers and captive power producers have been asked to offer projects based on domestic coal, imported coal or a mix of both. EoIs will have to submitted by April 7. Analysts said time was ripe for NTPC to make acquisitions as valuations were low. Besides, the company is among a handful of Indian firms with the balance sheet strength to pull off such deals. It had a cash reserve of Rs. 16,867 crore as on March 31, 2013.

BS