Power PSUs capex to rise nearly 7% at Rs54,910 crore in FY161 min read . Updated: 01 Mar 2015, 09:45 PM IST
In next financial year, NTPC earmarks capex of `23,000 crore followed by Power Grid `20,000 crore, NHPC `4,180 crore
New Delhi: State-run power PSUs including NTPC, Power Grid and NHPC will spend a total of ₹ 54,910 crore on capital expenditure (capex) in the 2015-16 fiscal, a surge of nearly 7% over the current financial year, mainly to enhance capacity.
Other PSUs are Damodar Valley Corp (DVC), NEEPCO, SJVNL, and Tehri Hydro Development Corp (THDC). All these state-run firms will spend a total of ₹ 54,910 crore as compared to ₹ 51,425.84 crore spent in the financial year 2014-15, the Union budget 2015-16 document said.
During the next financial year, NTPC has earmarked a capex of ₹ 23,000 crore to finance its ongoing and future projects along with meeting its capital requirements.
Power Grid will spend ₹ 20,000 crore followed by NHPC ₹ 4,180 crore, DVC ₹ 3,683 crore, THDC ₹ 1,580 crore, NEEPCO ₹ 1,292 crore and SJVNL ₹ 1,175 crore.
Country’s largest power producer NTPC recently received government approval for setting up of 15,000 MW grid-connected solar power projects under the national solar mission.
The completion of this 15,000 MW capacity projects under the national solar mission would accelerate the process of achieving grid tariff parity for solar power and also help reduce consumption of kerosene and diesel, which is presently in use to meet the unmet demand.
Giving a thrust to the power sector, finance minister Arun Jaitley in the Union budget 2015-16 announced increasing the renewable power capacity to 1,75,000 MW and setting up of five 4,000 MW each ultra mega power projects (UMPPs). These envisaged UMPPs will entail investment of ₹ 1 lakh crore. These initiatives will provide business opportunities for the companies engaged in power generation, transmission and distribution businesses.
Current installed power capacity of the country is over 2,58,000 MW from all energy sources.