NTPC stake in TELK awaits Centre's nod

The NTPC board has decided to go for a joint venture with the Kerala-owned Transformers and Electricals Kerala Ltd (TELK).

Since a decision on the percentage of equity participation in the joint venture has to be taken by the Centre, NTPC has forwarded its board's recommendations to the Union Government and a final decision is expected before April 10, a senior official source told Business Line.

Stake structure

The Kerala Government intends to keep 51 per cent stake in TELK while the rest could be given to NTPC as its investment in modernisation and expansion of the unit. He said SBI Caps had conducted the asset and machinery valuation.

NTPC, which has a lot of captive requirement, would be able to curtail the lead-time in sourcing the capital equipment. Besides, TELK is the only PSU that manufactures high quality transformers with capacity of 10 MVA and above in the country while the other suppliers are by and large multinational companies. Hence, there would be a cost advantage when it is manufactured in its own unit, the source said.

Taken from Business Line