YTL in talks to buy stake in India’s NSL thermal power business

PETALING JAYA: YTL Corporation Bhd is in talks with Hyderabad-based NSL Group to buy up to 49% stake in its thermal power business, India's Economic Times reported yesterday.
A person with direct knowledge of the development said that talks between the two parties have reached an advanced stage.
"The talks between YTL Corporation and NSL group for 49% stake in NSL Orissa Power and Infratech are now at an advanced stage and due diligence process is currently going on.
"The deal could be entered at little over par of investments brought in by NSL promoters and YTL may pay premium payments over the next few years based on milestones," the source said.
NSL Orissa Power is setting up a 1,320 MW coal-fired power project in Angul district of Orissa involving an investment of around Rs8,000 crore (1 crore equals Rs10 million, Rs100 equals RM5.22), which is being funded through debt equity of 70:30.
Apart from acquiring land for the supercritical thermal power project, the company has also obtained all the clearances and awarded engineering, procurement and construction (EPC) contract to Tata Projects.
Alstom was awarded the contract to supply the equipment, including boiler and turbine.
"YTL is also in talks with NSL group to buy majority stake in the operations and maintenance arm of the Orissa project," said the same person quoted earlier.
NSL Group chairman Mandava Prabhakar Rao confirmed earlier that the group plans to sell 49% stake in the power arm to raise funds but refused to divulge details.
"We are discussing with potential strategic partners." he said.
NSL Group has an operating renewable energy portfolio of 185MW and is implementing further 1,000 MW of renewable energy projects, where several global investors picked up stakes by investing over US$60 million, the report said.