• Investment World
• eWorld
• Brand Line
• Mentor
• Life
• Brand Quest
• The New Manager
• Smartbuy

Stocks

• Quotes
• SE Diary
• Scoreboard
• Open-End Mutual Fund

Cross Currency

• Rates
  
  

Shipping

• Ports
  
  

Archives

• Yesterday
• Datewise
• Resources
• In Focus
• In Depth
• Events 2007

Group Sites

• The Hindu
• The Hindu ePaper
• Business Line
• Business Line ePaper
• Sportstar
• Frontline
• The Hindu eBooks
• The Hindu Images

Distribution breakthrough

Anil Sasi

New Delhi, Aug. 27 After a series of unsuccessful attempts at entering the power distribution business, the Rs 37,000-crore NTPC Ltd has managed a breakthrough of sorts and is on course to take up retail distribution of electricity in upcoming industrial parks in Kerala.

NTPC had formed a wholly-owned subsidiary called NTPC Electricity Supply Company Ltd (NESCL) way back in 2002 and has been scouting for assignments since.

Electricity distribution is an area that the country’s largest power generator has been keen on as a step towards emerging as a fully-integrated power utility with a presence across the value chain.

In Kerala, NESCL is set to form a joint venture with Kerala Industrial Infrastructure Development Corporation (KINFRA) for taking on retail distribution of power in a number of industrial parks being developed by the latter, official sources said.

In addition, NTPC is in discussions with various State Governments for participating in power distribution in designated circles, besides plans to distribute power in the vicinity of its power stations. “The breakthrough in Kerala would enable the utility to have a presence across the entire gamut of power sector businesses, with transmission being the sole exception,” an official said.

KINFRA is currently working on as many as 11 major projects, including a Biotech Park, an integrated Textile Park, a Food Park, a Spices Park, and a couple of Advanced Technology Parks. NTPC could look at evacuating power from its 350-MW Kayamkulam station for distribution in these industrial zones, on payment of wheeling charges to the State utility, KSEB.

Over the last six years, NTPC tried for distribution assignments in Gwalior, Kanpur, Faridabad and Goa, even though all of these proposals proved to be non-starters.

Besides distribution, NTPC has already entered coal mining to secure fuel supplies and support its aggressive capacity addition plans. In addition, the utility has entered power trading, hydro generation and equipment manufacturing, with a foray into nuclear power also on the anvil.

More Stories on : Power | Outlook | Channels and Franchises | Kerala | NTPC Ltd

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

Copyright © 2008, The Hindu Business Line. Republication or redissemination of the contents of this screen are expressly prohibited without the written consent of The Hindu Business Line