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India’s NTPC to buy overseas power plants

Indian utility NTPC Ltd is open to buying foreign power plants of up to 1,000 megawatts capacity, though its overseas expansion strategy remains focused on deals to secure long-term fuel supplies, its chief said on Tuesday.

“We have no problem in acquiring a plant of 1,000 megawatts. If there are any such small assets, we are willing to look at it,” NTPC Chairman and Managing Director T.

Sankaralingam told Reuters on the sidelines of the World Energy Congress in Rome.

State-run NTPC, India’s largest utility which accounts for a fifth of the country’s power-generation capacity, said any overseas acquisitions would need to meet a few key conditions.

The target should be in a country with minimum political risk and friendly to India, he said.

“We will look at those countries where our investments are safe and we get a reasonable return and tax laws are simple,” Sankaralingam said.

Asked if NTPC would consider targets in Europe, he said: “Why not? If there is an opportunity in Europe, yes, why not?” He declined, however, to say if NTPC was sizing up targets.

“I just can’t say anything about that at this point in time.” NTPC, formerly the National Thermal Power Corporation, has gone beyond mainly coal-based projects and is looking at power from gas, renewables, and, maybe in the future, even nuclear.

It is also moving away from its focus on India to eyeing power projects in countries such as Nigeria and Sri Lanka.

Soaring global prices for coal and gas have forced NTPC to explore deals overseas as a way to secure cheaper supplies.

It is in talks to build power stations using gas and coal as fuels in Nigeria as part of a deal designed to fetch it 3 million tones of liquefied natural gas “at reasonable prices.” Sankaralingam said NTPC had identified a site in Sri Lanka for a 500-MW coal-based project that needs final clearances.

NTPC is also open to partnering with international groups keen on investing in its Indian projects, he said, adding that the company would “welcome those who can bring fuel supplies.” “One could be fuel resource, other could be capital ...

We’re not interested in equity players who want to invest for the short term and want to get out. We would like to look at players for long-term partnerships,” he said.

NTPC has received approaches from Malaysian and Middle Eastern groups keen to partner with it in Indian projects.

The company said it would bid for the fourth “ultra mega power project” planned in the eastern Indian state of Jharkhand, and could take an international group as a partner.

“As far as the bidding process is concerned, we would like to go on our own. If somebody wants to join subsequently, yes,” Sankaralingam said.

The auction for these coal-based ultra mega projects, each with a capacity of 4,000 MW, has seen feverish bidding by mainly private Indian groups. NTPC participated in one auction, but was outbid by a rival private bidder.

Sankaralingam said there was a danger some of these groups could end up overextending themselves, especially since coal prices were “skyrocketing.” “It’s not easy to build large-sized power plants. It’s easier to quote aggressively,” he said, adding that many bidders had limited experience building and running plants.

He said some of these groups could face “challenges” in achieving financial closures from banks and he was personally worried about their future.

Reuters

Qantas to buy up to 188 new aircraft

Qantas Airways Ltd , Australia’s largest airline, on Wednesday agreed to buy up to 188 new narrow-body planes worth more than $12 billion at list prices to defend its domestic routes and expand into Asia.

Qantas, which already has $22 billion in aircraft on order, announced its latest fleet upgrade as management prepared to meet shareholders angry over its board’s support for a failed buyout bid earlier this year.

The airline said it would buy 99 planes from planemakers Boeing Co and Airbus , with options and purchase rights for another 89.

They included 68 A320/A321 planes with options and purchase rights for a further 40, as well as 31 B737-800 aircraft and 49 options and purchase rights.

The planes on firm order will be delivered over the next six years, while the options would have delivery slots through to 2017.

Reuters

China Unicom delays selling Apple’s iPhone

China Unicom Ltd, the smaller of the country’s two mobile operators, said on Wednesday it had no immediate plans to sell Apple Inc’s iPhones in China but could be open to the idea.

“Right now, we don’t have any plans to introduce Apple’s iPhones in China,” Unicom Executive Director Li Zhengmao told reporters on the sidelines of a conference in Macau.

“But of course, we’re always willing to discuss a good business opportunity if it presents itself,” he said.

“As for whether we’ll talk about iPhones with Apple, you’ll have to ask Apple.”

His comments came a day after China Mobile chief executive Wang Jiangzhou said it was holding talks with Apple about offering iPhones in China, although he brushed off suggestions an agreement might come soon.

Shares in China Mobile, the world’s top wireless carrier, jumped nearly 7 per cent on Wednesday morning, outpacing a 3.7 per cent gain in the benchmark index.

Unicom’s shares were up 6.2 per cent, while Apple’s stock closed up more than 10 per cent on the Nasdaq on Tuesday.

Apple’s iPhone, a cellphone that accesses the Internet and plays music, sells for about US$500 in the United States — about double the average monthly salary in China.

Unicom’s Li said he could not judge whether Apple’s iPhone would gain a wide following in China, but said it would need to support text messaging in Chinese language to be accepted in the world’s largest telecoms arena.

“As long as there is a good product and a good business, we are always willing to talk, and find common ground,” Li said.

Reuters