ICICI Ventures, Larsen & Toubro and IL&FS are eyeing to take over 51% stake in NTPC-BHEL Power Projects (NBPPL), the 50:50 JV floated to make power equipment and pitch for EPC (engineering, procurement & construction) jobs from the power sector.

NBPPL is built-in Noida with an initial equity base of Rs 50 million
Currently, BHEL and NTPC jointly owns 50% stakes respectively in NBPPL

The Union minister of state for power has revealed that the government plans to give away the management control of NBPPL to a private strategic investor who will hold 51% stake and transmit operational and managerial expertise to the venture.

According to business strategy of NBPPL, it will undertake three broad categories of business in three phases.

NBPPL will be infusing  Rs 60 billion in setting up the power equipment manufacturing units, which when installed will produce 5,000 mega watt annually by 2013. The capex is likely to be funded through a 70:30 debt equity ratio.

Shares of NTPC closed down Rs 5.15, or 2.87%, at Rs 174. The total volume of shares traded at the BSE was 1,172,774 (Friday).