NTPC inks MoU to establish 1,980 MW power project

India`s largest thermal power generator, National Thermal Power Corporation (NTPC) inked a memorandum of understanding (MoU), with the Government of Bihar and the Bihar State Electricity Board (BSEB) on Oct. 14, 2007.

The MoU was signed to promote a joint venture company, with the aim of establishing and operating a 1980 MW (3X660 MW) coal based thermal power project, at Nabinagar site in Aurangabad district in the State of Bihar.

The joint venture shall have equal participation between the company and BSEB, with power allocation to BSEB upto 75%. The balance power shall be with the company for supply to other states.

NTPC was incorporated in the year 1975, as a public sector company. At present, the government of India, holds 89.5% of the equity and the balance of 10.5%, is held by FIIs, domestic banks, public and others. The company`s core business is engineering, construction and operation of power-generating plants. It also provides consultancy in power plant construction and power generation to companies in India and abroad. The installed capacity of NTPC is 27,904 MW.

Shares of the company gained Rs 6.7, or 3.08% to trade at Rs 224.20. The total volume of shares traded was 1,157,194 at the BSE. (12.25 p.m.,Monday)