NTPC Ltd has ended FY19 on a high note. The company commercialized capacity of 910 megawatts (MW) last week and, according to JM Financial Institutional Securities Ltd, is in the process of commercializing two more units with a combined capacity of 1,600MW.
Of course, project commissioning is still behind schedule. Requests by power distribution companies to align their schedule with demand delayed commercialization of capacities, NTPC told analysts.
Even then, the new plants will add to the regulated business, where the company is assured of fixed return on equity. JM Financial estimates the new plants to add 10% to NTPC’s regulated equity base.
