Hyderabad: The No.1 electricity generator in the country and the world’s sixth largest thermal power producer, National Thermal Power Corp. Ltd (NTPC), has made a proposal to set up a 2,000MW project in a joint venture with Andhra Pradesh State Power Generation Corp. (APGenco).
“The NTPC chairman and managing director, T. Sankaralingam, during a meet here last fortnight, proposed an 50:50 joint venture with APGenco and we have requested NTPC to come out with a formal proposal so that an agreement can be arrived at soon,” said Ajay Jain, managing director of the AP state power utility.
An NTPC spokesperson when reached for comment said: “At this point in time, I am not aware whether a formal proposal has been prepared and sent to APGenco.”
APGenco, the third largest state-owned power producer after NTPC and Maharashtra Power Generation Corp., currently has a capacity of 6,971MW. It has drawn up an expansion plan to add 8,735MW at an investment of Rs34,746 crore during the 11th plan period.
“NTPC had earlier entered into joint ventures with governments of Tamil Nadu, Haryana, Delhi and Uttar Pradesh. They now want to have a similar joint venture with APGenco,” said Jain.
India, which currently has a power generation capacity of about 120GW expects to take it to about 225-250GW by 2017. NTPC, currently accounts for about 20% of the country’s installed capacity, plans to take its total portfolio to more than 66,000MW by 2017. As on December-end 2007, it had a capacity of 26,850MW.
Once NTPC comes out with a formal proposal and enters into an agreement with the state government, a suitable location for the project would be finalized, Jain said.
“The project could be three units of 660MW or two of 800MW or three of 600MW. This could be worked out once we enter into an agreement.”
He said since Andhra Pradesh does not have scope for new pithead coal projects as Singareni Collieries in the state cannot provide for additional coal, the location for the proposed project has to be somewhere near the coastal area or near the rail route since NTPC has some coal blocks in Orissa and Jharkhand.
If the project size is finalized at around 2,000MW, the cost of the project could be up to Rs10,000 crore, said Jain, adding the funding could mostly comprise 80% debt and 20% equity. “After we enter into MoU with NTPC, it would take at least 4-5 years to complete the project... It could commence commercial operations sometime during early period of 12th plan period.”
APGenco had reported a total income of Rs4,325 crore and a net profit of Rs151 crore in fiscal 2007.