Contrary to its traditional organic growth strategy, largest power generator NTPC is willing to acquire distressed power projects to supplement its capacity growth. The company is currently sitting with cash pile of Rs 18,738 crore, which can be utilized for funding acquisition. NTPC has planned capital expenditure of Rs 20,200 crore for the financial year 2013-14 and is confident of executing it despite challenges related to land acquisition and environment clearances.
However, the company is not the only one with this strategy as many private companies like JSW Energy and Reliance Power have recently indicated their keenness to acquire distressed assets.
