Wednesday, May 3 2006 14:13 Hrs (IST) - World Time -

New Delhi: The Government today (May 3, 2006) approved the transfer of Badarpur Thermal Power Station (BTPS) to NTPC Ltd for Rs 408 crore, paving the way for its renovation and modernisation.

The Union Cabinet, at its meeting chaired by Prime Minister Manmohan Singh, gave its nod to transfer the BTPS to NTPC, an official spokesperson told reporters.

"With this decision, the government will stop putting further money to run the BTPS," the spokesperson said.

The transfer of power business of BTPS to NTPC will be at the business value of Rs 408 crore.

NTPC will be given 100 days to pay the amount of Rs 274 crore (excluding the value liabilities of Rs 134 crore) from the date of transfer.

As part of the transfer, the government has authorized lease of 517.08 hectares of land for a period of 50 years on which the plant is located to NTPC, who will pay an annual lease rent of Rs 5.2 crore (10 per cent of the book value of the land).

Government, however, reserves the right to review the lease of the land if the power generation activity is decided to be stopped or if the land is used or proposed to be used for an activity other than power generation.

The balance sheet of BTPS has been bifurcated into two parts one relating to power producing business, which will now be transferred to NTPC, and another as a residual assetholding unit, which will be retained by the Centre till the settlement of Delhi Electricity Supply Undertaking period dues.