NTPC to form JVs for foreign plants in 3 months

Monday, 14 Mar 2011 | Reuters

India's top power utility NTPC plans joint ventures in three months to build USD 3.5 billion power plants in Bangladesh and Sri Lanka.

In August, NTPC agreed with Bangladesh Power Development Board to set up two coal fired power plants of 1320 MW capacity each in an equal partnership venture. NTPC has also agreed to set up a 500 MW plant in Sri Lanka at a cost of about USD 500 million.

Mr Arup Roy Choudhury told Reuters in an interview that NTPC, whose 85% of current 33.2 GW capacity is coal based, has no plans to acquire overseas coal mines for at least two years as supplies for existing plants have been locked in.

I He said that "We plan to sign agreements on these two projects in 2 to 3 months with local joint venture partners.”

He said that NTPC which generates about 30% of the country's power, plans to add 25,000 MWs of electricity by 2017. Mr Roy Choudhury said that "Every third bulb in the country is lit by NTPC.”

While India has the world's fourth largest coal reserves, its coal imports have grown rapidly as Asia's third largest power producer seeks to step up capacities to end blackouts.

Power firms, including Reliance Power, TATA Power Co and Adani Enterprises have acquired coal assets overseas besides importing coal from Russia to power world's second fastest growing major economy.

But NTPC has no such plans at least for next two years.

He said that "We already have order for next two years in hand. I don't expect any overseas coal mine acquisition in at least two years. That might happen after two years, but definitely not now. We are not in a hurry to acquire overseas coal mines at least in two years."

India's coal imports in the current fiscal is estimated at 137 million tonne, junior coal minister Mr Pratik Prakashbapu Patil told lawmakers on Wednesday.