NTPC signs JV with Jharkhand government for Patratu Power Station

State-owned NTPC has signed a Memorandum of Agreement (MOA) with the government of Jharkhand to operate the Patratu Power Station.

According to the MOA, a joint venture (JV) company has been floated to manage the Patratu Power Station. NTPC will have a 74 percent equity in the entity, while Jharkhand Bidyut Vitaran Nigam Limited (JBVNL) will have the remaining 26 percent. NTPC’s majority stake in the JV will allow it more autonomy to raise the unit’s plant load factor (PLF) from 15 percent to 82 percent. The improved efficieny means more power available to Jharkhand.

The government of Jharkhand is not investing any capital in the JV, since it owns Patratu Power Station, while NTPC will be investing capital to improve the unit. NTPC did not disclose the amount it will be investing in the power plant.

By entering into the JV, Jharkhand government hopes to provide cheap power to households and also spur industrialization in the state.

NTPC is looking to acquire distressed power assets, a process it started more than a year back. However, the company has not been able to finalize any deal till date.