Jharkhand still to accede to NTPC's takeover of Patratu TPS

The Jharkhand government's apparent lack of enthusiasm is coming in the way of NTPC's proposal to takeover Jharkhand State Electricity Board`s (JSEB) Patratu thermal power station (TPS). While the central generator's offer to turnaround the 840 MW power station, which is presently operating at low PLF levels of around 17%, was submitted around four years ago, the state government is still to okay the pertinent memorandum-of-agreement (MoA), already finalized by JSEB.

• It seems that the state government's hesitation in fructifying the deal stems from opposition from the politically powerful union of the ailing power station's workers.
• In its present form, the draft JVA stipulates that NTPC would hold management control of the company, with 75% participation in the equity capital.
• The power station, located in the Ramgarh district of the state, is one of the oldest thermal power plants in the country. It comprises of ten thermal units, out of which six units, set up by the Czech firm, Skoda, in collaboration with Russian companies, are more than 36 years old. The four remaining units were built by state-owned equipment maker, BHEL, around 20 years ago.