The Hindu Business Line : NTPC scouting for coal mines abroad

Plugging fuel gap
NTPC looking at Indonesia, Mozambique and South Africa.
The company is in a joint venture for its overseas coal mine acquisitions.

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New Delhi, May 9 With the ongoing coal crunch threatening to disrupt electricity generation, NTPC Ltd — the country’s largest power producer — has widened its search for coal blocks abroad and is looking at options in Mozambique and South Africa. NTPC has already been looking at investing in coal blocks in Indonesia.

“We are looking to secure fuel supplies in order to support our ambitious generation target. We are looking at Indonesia, Mozambique and South Africa,” NTPC’s newly appointed Chairman and Managing Director, Mr R.S. Sharma, said.

NTPC, which needs about 110 million tonnes of coal at its 15 coal-fired stations annually, had imported around 2.5 million tonnes of coal last fiscal.

NTPC has floated a joint venture firm called Coal Ventures International Ltd in partnership with Steel Authority of India Ltd, Rashtriya Ispat Nigam Ltd, Coal India Ltd and National Mineral Development Corporation to secure coal mines abroad.

Mr Sharma said NTPC plans to add 22,430 MW of new electricity generation units during the Eleventh Five Year Plan (2007-12), which adds up to nearly 30 per cent of the over 78,000 MW generation capacity that the Centre plans to add during the period. Of this, 15,180 MW would be through coal-based power generation, 4,550 MW through gas-based generation and the balance from hydroelectric power.

“Out of NTPC’s Eleventh Plan target, 1,990 MW has already been commissioned. Construction work is in full swing for another 16,680 MW projects. Contracts for the balance projects would be awarded this year,” he said.

NTPC, which is set to begin work on its first overseas power project in Sri Lanka, is now looking at EPC contracts in West Asia. It is also trying to secure a contract for sourcing 3 million tonnes of liquefied natural gas (LNG) from Nigeria in lieu of setting up a 700 MW gas-based power plant and a 500 MW coal-based plant in the African nation, he said.

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More Stories on : Coal | Overseas Investments | NTPC Ltd | Power

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