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Kayamkulam plant capacity expansion may be advanced

Our Bureau

CHENNAI, Nov. 29

THE project for expanding the capacity of National Thermal Power Corporation's (NTPC) Kayamkulam plant may be advanced in view of the easy LNG prices, NTPC's Chairman and Managing Director, Mr C.P. Jain, told journalists here today.

Alongside the Kayamkulam expansion, NTPC also proposes to revive the four LNG-based projects in the North _ Kawas, Gandhar, Anta and Auriya, 650 MW each, also because world LNG prices have come down.

The gas-based Kayamkulam plant (in Kerala) of NTPC today has a capacity of 350 MW. NTPC proposes to expand the capacity by 1950 MW.

The four gas-based projects (Kawas and Gandhar in Gujarat, Anta in Rajasthan and Auriya in UP), had been deferred earlier because LNG prices were very high. ``We have now decided we would go for bidding (process) to source LNG,'' Mr Jain said, adding tha t the Kayamkulam expansion would also be advanced alongside.

Mr Jain was here in connection with an awareness programme on `Mission - Power for All', organised by NTPC. In response to a question, Mr Jain ruled out any NTPC interest in the Dabhol project, which is now up for sale. He refused to go into the reaso ns for that.

Mr Jain said NTPC had no plans for a project in Tamil Nadu, after the proposed Cheyyur project got stuck in environmental issues. He denied that there was any discussion with the Neyveli Lignite Corporation for putting up a lignite-based project jointly with NLC.

Responding to a question, Mr Jain said the proposal for NTPC's takeover of National Hydro Power Corporation (NHPC) had been dropped. ``We are getting into hydro power on our own,'' he said, pointing out that the company's 800 MW Kol dam project in Himach al Pradesh was under construction.

He said that between now and the year 2012, NTPC would add 20,000 MW to its existing capacity. Of this, various projects for 5,300 MW are under construction. Another 7,000 MW is in the pre-construction stage and would get into construction in about two a nd a half years.

Feasibility reports for projects for another 5,000 MW are under the consideration of the Central Electricity Authority, Mr Jain said.

Earlier, speaking at the awareness programme, Mr Jain said the country needed an additional 100,000 MW of generating capacity to meet the objective of `power for all by 2012'. This, and the attendant distribution network, would cost about Rs 8 lakh crore , he said.

He said that investors ``have been wary of the sector due to lack of confidence in getting returns on their investments,'' and "prompt and efficient collection of appropriate user charges from all the electricity consumers is the only long-term solution. "

However, several short/ medium term measures are being taken by the Government, he said.

Some of them are: increased generation through 'renovation and modernisation' of old power plants, utilisation of the surplus capacity of captive power plants, demand side management (introduction of time of day tariffs and metering), introduction of a n ew system of matching time and load profiles for different zones of the country and energy conservation.