New Delhi: NTPC Ltd,the country’s largest power generation company, is to finance 70% of its proposed Rs1.60-lakh crore five-year investment through debt. The company plans to add 22,000 megawatt (MW) capacity in the 11th Five Year Plan (2007-12), almost doubling its current capacity to 48,404 MW.
To achieve this ambitious target, which is around 17.5% of the current installed power generation capacity of the country, the company has plans for a capital investment of Rs1.60 lakh crore during the plan period.
“While 30% of the capital investment will be met through the internal accruals, the rest will be met through loans,” R.K. Jain, director (technical), NTPC, said.
Out of the 21,941 MW that the company wants to add in the next plan, 15,180 MW will be through coal-based generation, 4,550 MW through gas-based plants, and the balance through hydro-based generation.
The power major also plans to form a joint venture company with Telc for manufacturing transformers. It also plans to set up a nuclear power plant of 2,000 MW capacity.
Industry analysts are of the opinion that it is an interesting and quite ambitious plan as there were slippages in the 10th Plan. The analysts are of the opinion that while the company will be able to meet the extension projects targets, in the case of green field projects land allocations will be a concern.
Out of the total capital investment planned, around Rs10,000 crore is expected to go towards the production of 50 million tonnes of coal by 2013. The government has allocated eight captive coal blocks to NTPC for coal production. Over 80% of its installed capacity of 26,194 MW is coal-based.
A substantial portion of the total investment will also go towards the company’s hydropower generation plans. The company has plans to set up two hydro power projects in Arunachal Pradesh—a 4000-MW hydel project at Italin and a 500 MW plant at another location.
These projects will involve an investment of Rs22,500 crore. NTPC currently has a hydel project that is under construction at Koldam (800 MW) in Himachal Pradesh, which is expected to be completed by 2008.