The Hindu Business Line : NTPC net up 36 pc; records 100 pc billing collection

The NTPC Chairman and Managing Director, Mr C.P. Jain, addressing a press conference along with Mr Narasimharamulu, Director, Finance, in the Capital on Monday. - Kamal Narang

New Delhi , April 5

NATIONAL Thermal Power Corporation Ltd (NTPC) has recorded a net profit of Rs 4,905 crore on a gross revenue of Rs 25,184 crore during fiscal 2003-04, registering a 36 per cent rise over the previous year's figures.

Announcing the results here, the NTPC Chairman and Managing Director, Mr C.P. Jain, said that the corporation, which is slated to float an initial public offering for five per cent of its equity in the next few months, has recorded 100 per cent collection of billing after a long time.

According to officials, this is attributable to the one-time settlement package of State electricity board dues.

As part of the settlement, NTPC has access to the State's RBI account to make good any default by the State.

The threat of implementation of this instrument has ensured compliance by the SEBs. The improved financial results are also a consequence of the settlement package.

In regard to the sale price of power, NTPC's average tariff during fiscal 2003-04 is Rs 45 paise per unit, down from Rs 1.47 per unit in the previous year.

The tariff is likely to get further pared owing to the recent order of the power regulator. The Central Electricity Regulatory Commission (CERC) had recently reduced the return on equity from 16 per cent to 14 per cent for power generators.

In this regard, NTPC plans to file a review petition before the power regulator.

On the capacity addition front, as part of the Tenth Plan target of adding 9,370 MW, NTPC had already commissioned 1,500 MW.

Projects for 6,210 MW capacity are currently under implementation and bids for 1160 MW have been invited.