New Delhi: India’s NTPC Ltd on Monday said its net profit rose by at 27% on higher electricity sales and it planned to increase generation capacity by one-tenth in the current fiscal year.
Capacity addition: NTPC chairman R.S. Sharma. Pankaj Nangia / Bloomberg
Chairman R.S. Sharma said NTPC, India’s largest power producer, would spend Rs17,000 crore during the year to March 2010 to add 3,300MW more to its capacity of about 31,000MW at the end of March 2009.
NTPC has been scouting for coal mines abroad to feed its plants and is in the process of appointing merchant bankers for buying coal blocks in Indonesia, Mozambique and Australia, Sharma said. Merchant bankers and technical consultants for two coal blocks in Indonesia would be appointed within a week, he said.
The state-run firm said its net profit rose to Rs2,190 crore for its fiscal first-quarter ended June from Rs1,730 crore a year earlier.
Net sales rose to Rs12,000 crore from Rs9,540 crore.
“Primarily, it’s on generation growth,” Sharma told reporters of the rise in net profit.
NTPC generated 11% more power at 52.14 billion units in the April-June quarter, from 46.97 billion units during the year-ago period, he said.
Coal shortages in India are plaguing growth in power generation and the government earlier this month said the country would be able to add only 70% of its planned target of 14.5 GW capacity for the year to March 2010.
But NTPC has not suffered any generation loss due to coal shortage, Sharma said and was confident about the future.
“I must be able to maintain generation level at (more than) 90%,” he said.
NTPC plans to import 12.5 million tonnes (mt) of coal this fiscal, higher than 8.5 mt it imported last fiscal, Sharma said.