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PTC India plans to venture into power generation

According to reports, India’s largest electricity trader PTC India plans to own and operate power generation assets through its subsidiary PTC Energy that may commission greenfield projects or acquire operational plants.
The state-run company intends to increase share of long-term supplies while it also wants to bid for more long-term contracts with distribution utilities to increase its volumes. “PTC Energy can commission solar and wind projects on its own or form joint ventures to set up thermal power plants.

With the new government in place, we are confident of debottlenecking in power sector and PTC Energy is finalising its business plans,” PTC India’s chairman and managing director Deepak Amitabh told ET.

PTC Energy, formed two years ago with the mandate to own and operate generation assets, has paid up capital of Rs 50 crore and the board of PTC India has approved capital of Rs 200 crore. Amitabh did not rule out investing more in PTC Energy or possibility of listing it in future.

In 2013-14, PTC India accounted for almost 40% of electricity trade in India. Its volumes increased 23% to 35,130 million units compared with the previous fiscal. The company’s standalone revenue stood at Rs 11,510.71 crore and net profit at Rs 251.23 crore during the fiscal.

At present, over half of PTC India’s business comes from shortterm trade and electricity ex- changes while the balance is through its long-term agreements with distribution utilities. The company wants to reverse this ratio in the next two to three years to ensure a more stable business model.

Of the 11,000 mw of generation capacity PTC India tied up with private developers, close to 4,000 mw is commissioned and the rest is under construction at different stages. Now, the company is aiming to start generation on its own. PTC India has one listed subsidiary PTC India Financial Services, which has financed Rs 5,000 crore to the developers of power projects, transmission lines, and railways lines to evacuate coal and mines.

PTC India also holds close to 5% stake in Indian Electricity Exchange, which has set up a committee to explore avenues to offer exit route to private equity investors in next couple of years.

To expand its service basket, PTC India has represented before the power ministry to allow electricity traders to bid for long-term supplies under the revised bidding norms. “As per the Electricity Act 2003, power trading firms should be allowed to bid for entering into long-term power supply agreements with utilities. We have taken up this matter with the ministry of power, which is actively looking into the matter,” said Amitabh.

PTC India is aiming to increase volumes from its international electricity trade with neighbouring countries such as Bhutan, Nepal and Bangladesh. Amitabh did not rule out the possibility of selling electricity to Pakistan if leadership of both countries agreed.

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