The Central Electricity Regulatory Commission (CERC) has granted NTPC the licence for inter-state trading in electricity, even though the power generation behemoth fell short of having the necessary requirements. CERC said that it “relaxed the current ratio and liquidity ratio requirement in public interest in view of the policy of the government of India for promoting renewable energy”.
The net worth of NTPC is Rs 93,415 crore with a current ratio of 0.88 and a liquidity ratio of 0.74— falling short of the regulatory requirements of maintaining minimum current ratio and liquidity ratio of 1:1 for getting a trading licence. Trading licence requires a net worth of Rs 50 crore.
