The Hindu Business Line : NTPC set to start work at Simhadri power plant

Good prospects
The Rs 4,000-crore Simhadri expansion project will offer power to other States.
NTPC may also bid for more coal mines, including the ones owned by SCCL.
The first joint venture would be in place within 30 days.

THE NTPC CHAIRMAN and MD, Mr T. Sankaralingam (left), and the Chairman and MD of SCCL, Mr R.H. Khawaja, sign an MoU in the presence of the Chief Minister, Dr Y.S. Rajasekhara Reddy, and the Power Minister, Mr Mohammed Ali Shabbir, in Hyderabad on Wednesday. - K. Ramesh Babu

Hyderabad , Aug. 23

Power sector major NTPC Ltd, is set to commence work on the 2x500 MW power plant at Simhadri in Andhra Pradesh, with coal linkage from Western Coal Fields. It is now eyeing overseas coal mining projects through strategic partners.

The company is also poised to bid for the Ultra Mega Power Plant at Sasun in Madhya Pradesh.

The Rs 4,000-crore Simhadri expansion project unlike the existing 1,000 MW plant near Visakhapatnam (which is supplying power only to Andhra Pradesh), will offer power to other States as well.

Addressing newspersons here, the CMD of NTPC, Mr T. Sankaralingam, said that NTPC has embarked on expansion projects and expects to add about 3210 MW during this year and 25,000 MW each in XI and XII Plan period, respectively.

Speaking after signing a memorandum of understanding with the State-owned Singareni Collieries Company Ltd (SCCL), for a 50:50 joint venture, Mr Sankaralingam said that there is huge demand-supply mismatch for coal projects.

As a part of long-term strategy, the company has taken up coal mining and would have capacity for about 50 million tonnes through six mining blocks across four States. Through this joint venture, the company is now exploring the possibility of overseas mining projects that could potentially come up in Indonesia and Australia.

The MoU was entered by the two companies in the presence of Chief Minister, Dr Y.S. Rajasekhara Reddy, who described this as a milestone in the country's power sector.

This arrangement, he felt, could bring in significant synergies between the two companies.

Significant synergy

NTPC may also bid for more coal mines, including the ones owned by SCCL if offered for mining, the NTPC official said.

The CMD of SCCL, Mr R.H. Khwaja, said that a Joint Development Group will be constituted and the first joint venture would be in place within 30 days. The group, which will have representatives from both the companies, would work on projects that can be taken up, which would include mining operations and power generation.

Asked about expansion at the Ramagundem project, the NTPC CMD said, "The company added about 500 MW and it is now faced with shortage of land at the project site. We may consider expansion of this project at a later date."

On coal mining, Mr Shankaralingam said NTPC was exploring all possible options and has also taken to mining of coal projects and this venture will help it with additional supplies.

More Stories on : New Projects | Power | Andhra Pradesh

Article E-Mail :: Comment :: Syndication :: Printer Friendly Page