New Delhi: In a bid to improve the performance of Bihar's power sector, a Memorandum of Understanding (MoU) was signed between the Government of Bihar and NTPC Limited in Patna on Tuesday.
NTPC, Bihar govt sign MoU to enhance power sector
The MoU envisages the transfer of the Barauni Thermal Power Station (720 MW) to NTPC. In addition to this, equities of the Bihar State Power Generation Company (BSPGCL) in Kanti Bijlee Utpadan Nigam Limited (KBUN) and Nabinagar Power Generating Company (Pvt.) Limited (NPGC) will also be transferred to NTPC.
Meanwhile, KBUN is a subsidiary company of NTPC in a joint venture with the BSPGCL. Currently, NTPC and BSPGCL own 72.64 percent and 27.36 percent equity holding in KBUNL respectively. KBUNL owns and operates Muzaffarpur Thermal Power Station (MTPS) (2x110 MW+ 2x195 MW) situated at Kanti, District Muzaffarpur in Bihar.
As per the provisions of the MoU, all three power generation facilities are to be transferred to NTPC from the effective date to be notified by the Bihar government through a statutory transfer scheme.
The transfer of these power stations to NTPC is expected to result in their optimal and efficient utilisation, bring the tariff down and benefit the people of Bihar at large.
The Ministry of Power stated that power from all three stations shall be available to Bihar as before after the approval of Ministry.
On a related note, the MoU was signed in the presence of the Union Minister of State (Independent Charge) for Power and New and Renewable Energy, R. K. Singh, and Bihar Chief Minister, Nitish Kumar.