As part of its low carbon growth strategy, power major NTPC Ltd is looking to invest about Rs 1,00,000 crore over 10 years to set up the country's largest hydro power project.
The company is currently preparing a detailed project report for the proposed 9,500-MW Siang Upper hydroelectric project in Arunachal Pradesh.
“We are talking to the Arunachal Pradesh Government for setting up a 9,500-MW project in the State,” the NTPC Chairman and Managing Director, Mr Arup Roy Choudhury, said in an interaction here. He did not specify the funding plan for proposed project.
The project would mark a big jump in hydro sector exposure for the predominantly thermal power major, which is currently working on a shelf of around 1,700 MW of hydel capacity. Of this, NTPC plans to commission its much-delayed 800-MW Koldam project in Himachal Pradesh next fiscal, which will be its first hydro project to be commissioned.
NTPC is considering a number of measures to secure fuel supplies in the future, including imports to tide over the shortfall in domestic supplies.
As a step in this direction, the company is exploring the possibility of entering into 25-year coal import contracts as it seeks to secure fuel supplies and hedge against price fluctuations.
“The coal price will be beneficial for us (under long-term contracts), though it is difficult to say whether acquisitions or long-term supplies are better,” Mr Roy Choudhury said.
The company is also looking at securing more coal mines in India, he said.
NTPC last week decided against bidding for Australian coal miner Bandanna Energy Ltd citing high valuations .
On the issue of cancellation of mine allocations made to it earlier by the Coal Ministry, he said: “The Coal Ministry is re-examining the issue on our request.”
The Coal Ministry had de-allocated three coal blocks awarded to NTPC over the failure of the firm to develop them.
NTPC has an installed capacity of 34,854 MW and is working on a basket of new projects of more than 40,000 MW for implementation. Projects of more than 14,000 MW are under various stages of construction.