The case presents an evaluation by the management of the National Thermal Power Corporation (NTPC) in the year 2001 for a joint venture with the Steel Authority of India Ltd (SAIL) in captive power generation. The joint venture is triggered by the financial and business restructuring plans proposed for the financial recovery of ailing SAIL in the late 1990s. The venture would primarily function to provide the much needed critical power supply to the manufacturing units of SAIL. Although the possibility of selling excess power to the outside markets remains feasible, the escalation of the capacity could be a bone of contention with NTPC and SAIL. Among several other considerations, NTPC needs to review the proposed valuations of ₹3,910 million for the proposed venture. Amidst the inward pressure from the Government of India, given the state of the affairs, while NTPC inner circles might be concerned about buying some ‘junk assets’, the stakeholders at SAIL would have been curious about a possible fire sale of its assets.