NTPC could build new coal-fired power plants if needed, says chairman

NTPC Ltd Chairman Gurdeep Singh said on Friday announced that the country's top power producer could build new coal-fired power plants if needed.

"We should not be shying away. If there is a requirement, we may have to go for new coal-based power plants," Singh said.

Additionally, Singh also said that the company was considering building nuclear power plants, but discussions were preliminary. 

Meanwhile, just last week, NTPC Ltd. posted a 25% jump in quarterly profit as demand for electricity soared in one of the world’s fastest-growing economies.

Profits increased to 41.3 billion rupees ($551 million) in the three months through December, compared with 33.2 billion rupees a year ago, the state-run company said in a stock-exchange filing Saturday. Profits surpassed an average analyst estimate of 35.9 billion rupee. Revenue jumped 18% from a year earlier to 288.6 billion rupees.

Demand for electricity jumped after factories and commercial establishments ramped up operations following months of slowdown caused by the pandemic. NTPC’s coal-fired plants, which account for 89% of the company’s standalone generation capacity, operated at an average utilization rate of about 68% during the period.

Power producers faced one of the country’s worst coal supply disruptions during the quarter, leading to a plunge in inventories. While supplies have improved, generators such as NTPC are leaning back on imports to maintain stockpiles of the fuel that helps produce nearly 70% of India’s electricity.

The company, which is emerging as a major champion of India’s clean-energy transition, said in a separate statement that it will spin off its renewable energy assets to a wholly owned company. It will either seek strategic investors or hold an initial share sale for the renewable-power company, it said.

As NTPC’s shares rose 3.8% last week in Mumbai, reaching their highest level since early November. Shares have gained 13% this year. Total expenditure for the period rose 13% from a year earlier to 244.3 billion rupees. Costs may rise further as the company revives coal imports. The New Delhi-based power producer’s income from other sources rose 28% to 9.72 billion rupees.