It is heartening to note that NTPC is considering picking up 49% of the equity in TELK. For all professionals in the Power Sector this is good news, for we are at least sure that TELK will definitely not go the NGEF way.
The report also hints at TELK facility being used for repairing the failed Transformers and other equipment of NTPC . This adds a jarring note. As an investor one can not fault NTPC for negotiating a deal most suited for their needs. But one would expect a more proactive role from NTPC, in the interest of their own share holders.
TELK, as a manufacturer of Generator Transformers has a unique position in the country. On last count their Transformers were supporting more than 25000 MW of generating capacity in the country be it Nuclear or Thermal or Hydro Electric Projects. The performance of their units have also been by and large satisfactory. Given this back ground and the current boom in the market with so much of accelerated investment flowing in the Generation and Transmission segment, NTPC as an investor should immediately ensure maximisation of the capacity utilisation by providing working capital funds. Price realisations in the Transformer industry has gone up with existing capacities being utilised fully. Even Chinese vendors are picking up orders in the Indian market.
Today when multinational Power companies such as Siemens, ABB & AREVA are investing in the India for establishment of green field capacity or expansion of their existing capacity, it will be indeed sad, if the existing capacity of a leading indigenous manufacturer is turned in to repair facility.
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