NTPC Ltd. announced a significant acquisition deal on Friday, agreeing to purchase Sinnar Thermal Power Ltd. in Maharashtra for ₹3,800 crore through an insolvency resolution process. The transaction represents a strategic expansion move for India's leading power producer.

Acquisition Structure and Partnership

The acquisition involves a consortium between Maharashtra State Power Generation Co. (MAHAGENCO) and NTPC, with both partners holding equal stakes in the deal. A shareholder agreement was signed in Delhi for the acquisition of the power plant, which is currently undergoing corporate insolvency resolution process under the Insolvency and Bankruptcy Code 2016.

Regulatory Approval and Timeline

The resolution plan submitted by the MAHAGENCO-NTPC consortium received approval from the National Company Law Tribunal, Delhi, in November last year. The acquisition is scheduled for completion by February 26, according to the stock exchange filing.

Plant Specifications and Capacity Enhancement

Sinnar Thermal Power Ltd. owns a coal-based thermal power plant with a capacity of 1,350 MW, located at Sinnar in Nashik district. The facility represents a substantial addition to NTPC's existing portfolio.

Strategic Impact

NTPC stated that the successful acquisition and implementation of the resolution plan will advance its position as India's leading power producer. With the addition of Sinnar Thermal Power Ltd., NTPC Group's total installed capacity will reach 86,987 MW, while the commercial capacity will increase to 85,907 MW.

Market Performance

Shares of NTPC ended 2.30% lower at ₹336.00 on the NSE ahead of the announcement, compared to a 0.70% decline in the benchmark Nifty. Despite the day's decline, the stock has gained 5.00% on a 12-month basis, reflecting investor confidence in the company's expansion strategy.

NTPC Ltd and Maharashtra State Power Generation Company Ltd (Mahagenco) have executed a shareholder agreement on January 9, 2026, marking a significant step in their joint acquisition of Sinnar Thermal Power Ltd (STPL). The agreement was announced through an exchange filing by NTPC and relates to the acquisition of STPL, which is currently undergoing a corporate insolvency resolution process under the Insolvency and Bankruptcy Code, 2016.

NCLT Approval and Transaction Timeline

The resolution plan submitted by the NTPC-Mahagenco consortium received approval from the National Company Law Tribunal (NCLT), Delhi, on November 28, 2025. According to the filing, the acquisition must be completed within 90 days from the NCLT approval date, setting the deadline for February 26, 2026.

Asset Details and Financial Terms

STPL owns a coal-based thermal power plant with a total capacity of 1,350 MW, comprising five units of 270 MW each. The facility is strategically located at Sinnar in Nashik district of Maharashtra. The consortium will acquire 100% shareholding in STPL for a total consideration of ₹3,800.14 crore, to be paid entirely in cash.

Ownership Structure and Capacity Enhancement

Upon completion of the transaction, NTPC and Mahagenco will hold equal stakes of 50% each in STPL. This acquisition will significantly boost NTPC Group's power generation capabilities, with the total installed capacity increasing to 86,987 MW and commercial capacity rising to 85,907 MW.

Market Performance

Shares of NTPC closed over 2% lower at ₹336 on January 9, 2026, the day the shareholder agreement was executed. The stock movement reflects market reaction to the announced acquisition deal.