The Hindu Business Line : NTPC to become 66,000-MW `integrated energy utility' by 2017

THE state-run National Thermal Power Corporation has said it is targeting an installed capacity of 66,000 MW by 2017 and plans to become an integrated energy utility with forays into nuclear generation, coal mining and gas exploration.

"We have decided to increase our Eleventh Plan target from 11,558 MW to 17,052 MW. We are identifying projects totalling 20,000 MW for the Twelfth Plan and plan to become a 66,000 MW company by 2017," the NTPC Chairman and Managing Director, Mr C.P. Jain, told shareholders at the company's annual general meeting here.

NTPC, which has 20 coal and gas-fired plants at present with a total installed capacity of close to 24,000 MW, had earlier set a target to achieve a total installed capacity of 56,000 MW by 2017.

Addressing shareholders at the first AGM since NTPC's listing on the bourses last year, Mr Jain said the company had decided to participate in the entire energy value chain of coal mining, gas to ensure equity stakes in gas fields, and LNG terminals to assure sustainable fuel supply in the long run.

The company was also looking to enter the nuclear sector and planned to add about 2,000 MW capacity during the Twelfth Plan, Mr Jain said. The foray into the critical sector would, however, depend on a host of factors such as costs, availability of fuel and necessary approvals, he added.

Mr Jain said the company was going for coal mining to enhance fuel security. NTPC had been allotted one coal block and had also identified two 3,000 MW integrated power projects in Orissa and Chhattisgarh where it would draw coal from its own mines, he told reporters after the AGM. Mr Jain said as part of the strategy on forward integration, the company planned to acquire parallel distribution licences in areas around their projects and secure consultancy assignments in distribution.

NTPC also planned to increase power trading volume, with plans in place to promote a National Power Exchange to facilitate power trading in the country. Identifying assured availability of coal and gas as the key to the company's success and to achieve energy security, Mr Jain said issues concerning fuel needed policy initiatives such as priority allocation of coal blocks and profit gas share of the Government to keep power tariffs at an affordable level.

Mr Jain said the company would raise up to $300 million through a Euro Bond issue around January-March 2006 for meeting capital expenditure requirements.

The NTPC stock closed the day at Rs 102.35, marginally lower than Thursday's close of Rs 102.90 per share. The 52-week high for the stock stood at Rs 109.30, while the 52-week low was Rs 72.

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