India’s largest power generation company NTPC may opt out of the race to buy Reliance Infra-led BSES Rajdhani and Yamuna electricity distribution companies (discom) in Delhi. The move comes on the back of NTPC’s preliminary due diligence, which suggests that the bid for BSES discoms in Delhi will not be a viable business.
In May this year, NTPC had written to the Delhi Electricity Regulatory Commission (DERC) expressing its interest in buying the two discoms provided it is conducted under a transparent process.
“The bidding procedure is not transparent, if the DERC administered the bidding process, NTPC may look at bidding for the two BSES discoms in Delhi. The terms for the equity sale of the discoms are not very clear and the process is opaque as of now,” said a source who wished not to be named.