NTPC appoints EY as a consultant for the purchase of BSES Delhi Discom Enterprises


State-owned NTPC Ltd hired EY, a consulting firm for the acquisition of electricity supply companies from Delhi, according to two people who are aware of the growth of Reliance Infrastructure Ltd.

The competition in the acquisition of Reliance Infrastructure Ltd’s 51 percent of the power generating capacity built in India, comprising almost a fifth of 370 gigawatts ( GW), was evinced in May, each supplying the electricity for approximate 4.4 million customers of BSES Rajdhani Electricity Ltd (BRPL) and BSES Yamuna Power Ltd (BYPL).

“The NTPC contract was subsequently awarded to the EY,” an individual quoted previously who was reluctant to be identified, said EY and SBI Capital Markets.

This is in the sense of the submission of uncommitted bids to buy 51% of the stake in BRPL and BYPL by the Enel Group, Torrent Power Ltd, and the Greenko Group, Mint reported earlier.

Queries to the NTPC, BSES, and SBI Capital Markets Ltd spokespersons were not responded to on Thursday morning. An EY-speaker declined to make a comment.

While NTPC has been mainly engaged in electricity generation and selling to government power boards (SEBs), the focus has been on distribution since 2008. The largest power provider in India has focused on a strategy to address the complexities of a changing energy environment with regulatory reforms and low green energy charges.

Last year NTPC set up a National Electricity Distribution Company (NCDC), a power distribution company throughout India in an equal joint venture with state-owned Power Grid Corp. of India Ltd (PGCIL).

The second person was aware of the above-mentioned grow in anonymity: “EY will assist NTPC in evaluating two BSES services.

Delhi’s power distribution companies are among India’s most stable and lucrative assets, with the lowest total technical and commercial losses of 9,7 percent of national capital at 21,4 percent being the highest worldwide, with an average loss of 9,7 percent.

State leader of the NTPC said: “We find from media reports that, according to the Delhi State Regulatory Commission (DERC) reviewed on 26 May, Reliance ADAG wants to revocate 51% of its holdings on the BSES Rajdhani Power Ltd (BRPL) and BSES Yamuna Power Ltd (BYPL).”

“We want to let you know that NTPC has chosen to go into distribution and that they want to acquire distribution properties,” said the email.

Though BSES Rajdhani Power uses 4 771 kilowatt-hours ( KWh) of electricity per capita and a demand of up to 3,211 MW, BSES Yamuna Power uses 3,864 kWh annually of electricity per capita and a peak demand of 1,561 MW. India’s consumption per capita is about 1,149 kWh, among the lowest per capita worldwide.

Mint published on 12 May on BSES Rajdhani and Yamuna, which addressed BSES with KPMG responsible for stakeholder sales. KPMG was subsequently withdrawn from the sales process by Reliance Infrastructure Ltd.

In addition to questions such as delays in issuing tariff orders by the Delhi Electricity Regulatory Commission, resulting in a rise in the cost of operating capital, and the pending repair of capital expenditure from 2004-2005, tenderers will also need to call for regulatory assets.

If the Power Regulator recognizes such expenses but does not include them in tariff setting a regulatory asset is created. For subsequent tariff adjustments, these costs shall be changed and are, interim, taken into account as a regulatory asset. The combined BRPL and BYPL regulatory assertion is approximately Rs40,000 crore.

The company was privatized in July of 2002 in Delhi Distribution Ltd. In July 2002, the BSES was privatized. Delhi Power Co is a joint venture with distribution firms. Ltd, which has an interest of 49 percent in each. Delhi ‘s military engineering facilities (for the canton of Delhi) and New Delhi municipal corporations have been included in several discussions.


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