The acquisition of THDC India Ltd (THDCIL) and North Eastern Electric Power Corp. Ltd (Neepco) will not test NTPC Ltd’s financial limits. But the company will have to be careful in integrating these new acquisitions to generate remunerative returns.
Together, the firms will add close to 3 gigawatts (GW) of operating power plants to NTPC. Around 2GW of power plants are under construction and several more are in the pipeline. This provides good growth visibility for NTPC.
But these projects are predominantly hydropower plants. NTPC, on the other hand, has a proven track record in building and running a large portfolio of thermal power plants efficiently.
