Govt approves Rs 1,000 cr waiver for NTPC

New Delhi, Mar 27: State-run National Thermal Power Corporation (NTPC) today received the approval from the government for waiving the ceiling of Rs 1,000 crore that will enable the power major to form joint ventures and participate in the bidding for state power utilities in the country and abroad.

''The approved delegation will facilitate participation of NTPC in the bidding for the development of power projects initiated by utilities and result in greater competition and establishment of more public sector power projects,'' Cabinet spokesperson told reporters here.

Now the company can bid for for setting up power projects, subject to the implementation of maximum 10 projects.

''However, the ceiling of 15 per cent of the net worth of NTPC in one project and overall ceiling of 30 per cent of the net worth in all such projects of NTPC put together shall remain,'' the spokesman added.

The ceiling of Rs 1,000 crore did not allow the company to go for bigger projects and had to wait for the Cabinet clearance, which causes delay.

NTPC is bidding for seven projects, which have investment needs from Rs 5,500-8000 crore, and the PSU will have to investment between Rs 1,500-2,500 crore per project.

UNI