Delhi Electricity Regulatory Commission rules out role in BSES discom sale
The development comes after India’s largest power generation utility, NTPC Ltd, in a May 26 communication to the regulator evinced interest in acquiring a 51% stake each in BSES Rajdhani Power Ltd (BRPL) and BSES Yamuna Power Ltd (BYPL).Updated: Jun 02, 2020 08:17 IST
Delhi Electricity Regulatory Commission (DERC) will not intervene in the sale process of Reliance Infrastructure Ltd’s Delhi electricity distribution businesses, said DERC chairperson SS Chauhan. The development comes after India’s largest power generation utility, NTPC Ltd, in a May 26 communication to the regulator evinced interest in acquiring a 51% stake each in BSES Rajdhani Power Ltd (BRPL) and BSES Yamuna Power Ltd (BYPL). Enel Group of Italy, Torrent Power Ltd and Greenko Group have also submitted non-binding offers to pick up stakes in the two Reliance Infra entities.
NTPC has been working on a strategy to address the challenges posed by an evolving energy landscape, marked by regulatory changes and record-low green energy tariffs. It may also compete in the privatisation exercise of power distribution utilities in Union territories, Mint reported.
On several instances, BRPL and BYPL were unable to pay electricity dues to the state-run firm, and considering its large balance sheet NTPC believes it will be able to access capital at a lower cost to revive the two entities. “DERC has nothing to do with it. It’s a settlement outside DERC, between parties following a fair process. What has it got for DERC?” Chauhan added.
Officials said there was no legal provision for an intervention in sale process of the utilities, which supplies electricity to 4.4 million people in national capital.