Author: Nikita Naik.
Introduction:
NTPC Limited, or the National Thermal Power Corporation Limited, is a leading Indian public sector undertaking in the power generation and energy sector. Established in 1975, NTPC has emerged as the largest power utility company in India and a key player in the global energy landscape. With a diverse power generation portfolio encompassing coal, gas, hydro, and renewable energy sources, NTPC plays a pivotal role in meeting the nation’s growing energy demands. The company is renowned for its commitment to sustainable and environmentally conscious practices, consistently delivering reliable and affordable power to support India’s economic development. NTPC’s operational excellence, cutting-edge technology, and emphasis on social responsibility have positioned it as a cornerstone in India’s power generation sector.
Objective:
To calculate Beta of National Thermal Power Corporation Limited and see its significance.
Literature Review:
1. The Bongaigaon Thermal Power Station, situated in Kokrajhar, Assam, was a major plant with four coal-fired units, commissioned between 1981 and 1986. Despite technical issues and operational challenges, none of the units met the desired generation levels, leading to a shutdown in 2002. Recognizing the economic impracticality of renovating the existing units, the National Thermal Power Corporation (NTPC) proposed a new 750 MW Thermal Power Station at the same location, adopting Fuel Gas Desulphurization (FGD) technology due to the high sulfur content of Assam coal. The project, inaugurated in 2006 by the Hon’ble Prime Minister, marked a significant strategic move for NTPC in expanding its presence in the northeastern part of the country. The project faced delays due to external factors beyond NTPC’s control, extending by over four years. Despite these challenges, NTPC, through innovative initiatives and out-of-the-box thinking, successfully commissioned two out of the three units.
The Bongaigaon Thermal Power Station’s journey reflects NTPC’s commitment to overcoming technical and external challenges, showcasing resilience in steering a flagship project of national importance towards completion. This case study also sheds light on NTPC’s notable social initiatives, highlighting the company’s engagement in social welfare and progress, which is a distinctive aspect in the context of a publicly listed company with substantial business interests.
2. The Nakai Plateau, which once housed the largest Asian elephant population in Laos, experienced significant habitat loss due to the completion of the Nam Theun 2 hydroelectric dam in 2008, resulting in a 40% reduction in elephant habitat. A study conducted from 2004 to 2020 examined the consequences, revealing a surge in human–elephant conflict (HEC) locally and up to 100 km away after dam completion. Genetic sampling in 2018/2019 indicated a decrease in genetic diversity, a male-biased sex ratio, and dispersal of breeding-age females from the Plateau, raising concerns about the long-term viability of this crucial elephant population and other species in the region.
The completion of the Nam Theun 2 dam in 2008 had profound consequences for the Nakai Plateau’s ecosystem, causing a 40% loss of elephant habitat and triggering a surge in human–elephant conflicts (HEC) up to 100 km away. A study spanning from 2004 to 2020 revealed a decline in genetic diversity, a skewed sex ratio, and the dispersal of breeding-age female elephants from the Plateau, posing serious concerns about the sustainability of this once-thriving population and other species in the area. The findings highlight the broader implications of hydropower projects in Laos and Southeast Asia, emphasizing the need for understanding and mitigating their ecological impact.
Data Collection:
The data for Nifty and Equity of National Thermal Power Corporation Limited has been collected from nseindia.com and yahoo finance.com from 1st November,2022 to 31stOctober, 2023.Data was manipulated to calculate the Friday Closing Price.
Data Analysis:
NTPC Share= 0.01 + (-0.14) Nifty
n= 48, R square= 0.01, F = 0.50
Above equation shows the relationship of the company ‘National Thermal Power Corporation Limited’ with ‘Nifty.’ t stat for b is -0.71, p value is 0.48, which is more than 0.05 so, b = 0. Meaning Nifty does not impact ‘National Thermal Power Corporation Limited’.
R^2 = 0.01 Meaning 1% of ‘Power Grid Corporation of India Limited’ share is explained by Nifty and 99% depends upon other things like fundamentals.
F = 0.50 And p = 0.48 which is more than 0.05, hence, the model is not statistically significant at the 5% significance level, further Nifty does not affect the share significantly.
Conclusion
The results indicate that (Beta) i.e. b = -0.14 which is less than 0; so it has an inverse relationship with the market.
References:
1. Chakrabarti, U. (2017). A case study on bongalgaon thermal power project assam built by NTPC limited. Annals of Management Science, Suppl.Special Issue, 5(2), 135-147. Retrieved from https://www.proquest.com/scholarly-journals/case-study-on-bongalgaon-thermal-power-project/docview/2551711275/se-2
2. Budd, K., Suddychan, D., Tyson, M., Camille, N. Z. C., McWilliam, A., Hallam, C. D., Eggert, L. S. (2023). Effects of a hydropower project on a high-value asian elephant population. Ecology and Evolution, 13(7) doi:https://doi.org/10.1002/ece3.10353
