NTPC will set up at least three 4000 mw power plants through tie-ups with state governments. The company, which did not win any of the four ultra mega power projects (with capacity of at least 4000 mw) that have been awarded by the central government so far, plans to build these plants at Chhattisgarh, Karnataka and Madhya Pradesh.
While NTPC is set to place bulk equipment orders for the Chhattisgarh and Karnataka plants, it is doing feasibility studies for the MP plant.
“We want to start construction on our 4000 mw plant in Madhya Pradesh by the end of this year,” said R S Sharma, chairman and managing director, NTPC. “We are planning to build two more plants in the state, for which the environmental studies are going on”.
NTPC’s plans are significant because only Reliance Power is currently building three such large projects, which the Anil-Dhirubhai Ambani Group-promoted company won through aggressive bidding.
While NTPC has written to the power ministry seeking coal linkages for the MP plant, it has already received it for the Chhattisgarh and Karnataka plants.
The three plants will consume 60 mt of coal annually.
The government is worried about the ability of Reliance Power to raise money to fund its UMPPs.
It recently introduced a clause that bars the company from bidding for the upcoming UMPP in Orissa before completing at least one of its UMPP — NTPC is comfortable with its cash reserves, said analysts.
“NTPC has a very strong balance sheet and it is planning to take its capacity to 75,000 mw by the end of the 12th Plan. The company has cash reserves of Rs 18,000 on its books while its debt:equity ratio was 0.54:1 in 2009. This is the only company that can come up with large power projects without facing fund raising problems,” said Rupesh Sankhe, equity analysts with Angel Broking.
NTPC currently has a capacity of 31,704 mw.
Meanwhile, Coal India and NTPC have formed a 50:50 joint venture to acquire coal mines in India and abroad. CIL NTPC Urja Pvt Ltd will carry out acquisitions of greenfield or operational coal and lignites in India and abroad, NTPC said.
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