Date:23/07/2005 URL: http://www.thehindubusinessline.com/2005/07/23/stories/2005072302460300.htm

Back NTPC plans to set up power plants linked to coal mines

Our Bureau

Kolkata , July 22

WITH a view to overcoming the shortage of coal supply in the long term, NTPC, the country's largest consumer of coal and the largest power producer, has decided to go for integrated projects that involve the setting up of pithead power plants along with development of coal projects linked to the plant.

In the 11th Plan, the company plans to set up two power projects having a capacity of 6,000 MW of power tied to coal mines that have a capacity of 30 million tonnes per annum, according to Mr C.P. Jain, Chairman and Managing Director.

Speaking to newspersons, Mr Jain said that a proposal for allocation of captive mines had already been forwarded through the Union Ministry of Power to the Coal Ministry for approval.

The proposed investment in the mines has been pegged at Rs 2,500 crore, while that in the tied-up power projects is Rs 25,000 crore.

The power plants would be set up at Talcher in Orissa and Raigarh in Chattisgarh.

This would be the way forward in the future as it would facilitate cost-effective operations, besides ensuring availability of coal in the long term.

Mr Jain said that NTPC consumes 100 million tonnes of coal from Coal India Ltd.

While the acquisition and rehabilitation of the mines proposed to be acquired would be done by NTPC, delivery and dispatch of the coal would be done by another agency, which would be selected by way of open tender.

A joint venture with Coal India Ltd in this regard could not be ruled out, he added.

According to him, NTPC has firmed up plans to set up 9,160 MW of capacity in the 10th Plan and 17,000 MW of capacity in the 11th Plan.

In the 2005-06 fiscal, a total capital budget of Rs 8,550 crore has been earmarked.

This would be funded to the tune of Rs 2,724 crore from internal accruals, Rs 4,526 crore from banks and institutional finance and privately placed bonds.

An amount of around Rs 1,300 crore would be raised through Euro bonds, which would be floated in the last quarter of 2005-06.

Other new initiatives include a focused foray into applied technological research in new areas. An Energy Technology Centre would be set up for the purpose. Eighty acres have been acquired in Greater Noida for the purpose, Mr Jain said.