NTPC stock gains on extension of joint development pact with UP state govt utility

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NTPC stock gained in early trade on September 15, 2023, after the company signed a supplementary joint venture agreement with UP state government utility. The agreement extends the joint development of Meja Stage-II (2X660 MW), Obra ‘D’ Thermal Power (2X800 MW), and Anpara ‘E’ Thermal Power Plant (2X800 MW) projects.

The supplementary agreement is subject to techno-commercial viability and necessary clearance and power purchase agreement (PPA) in place.

Brokerage firm Sharekhan has given a ‘buy’ rating to the NTPC stock with a target price of Rs 260 per share, citing the company’s plan to add commercial thermal power capacities of ~10 GW over three years.

NTPC stock has given a return of 33.73 percent over the last six months, compared to the benchmark Nifty 50 which has given a return of 18.46 percent over the same duration.

Overall, the extension of the joint development pact with UP state govt utility is a positive development for NTPC. The company’s plan to add commercial thermal power capacities is also in line with the government’s focus on increasing power generation capacity.

          

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