NTPC identifies 10 projects as mega ventures

Sanjay Jog

Mumbai, Sept 20: The state-run National Thermal Power Corporation (NTPC) has identified 10 coal-based and hydro projects as mega projects with a total capacity of 12,670 mw. NTPC, which would finance these mega projects in 70:30 debt equity ratio, would mobilise equity portion through internal resources and debt from external and domestic borrowings.

NTPC sources told The Financial Express that the Rs 7,800-crore Sipat project with a total capacity of 2,640 mw is expected to receive Cabinet approval shortly. The first phase of 660 mw is expected to be commissioned in 36-38 months.

Sources said that the per megawatt cost is estimated at Rs 4 crore and the per unit tariff would be around Rs 2.50. NTPC proposes to sell the power generated from Sipat to Madhya Pradesh, Gujarat, Chhatisgarth and Goa. The Maharashtra State Electricity Board has refused to draw power from the Sipat project.

According to the Centre’s mega power project policy, there would be complete income tax holiday for a block of 10 years within the first 15 years of plant operation. In addition to this, there would be complete exemption from customs duty on plant equipments. The respective state government would exempt such projects from sales tax and local levies. The list of other projects include Anta expansion combined cycle project stage-II, (650 mw), Rajasthan. The Central Electricity Authority (CEA) has sanctioned techno economic clearance and NTPC proposes to commission the project in 2005-06, subject to availability of liquified natural gas (LNG) and signing of power purchase agreements by beneficiary states.

Auraiya expansion stage-II, Uttar Pradesh (650 mw), Kawas expansion stage-II, Gujarat (650 mw) and Jhanaor Gandhar expansion stage-II, Gujarat, would be taken only after beneficiary states agree to bear cost of generation, based on LNG price.

NTPC is expected to receive CEA’s techno-economic clearance for Kahalgaon super thermal project stage-II, Bihar with a total capacity of 1,320 mw. The first unit with a capacity of 660 mw would be commissioned in 2006-07 and the second unit in 2007-08. NTPC awaits CEA’s techno-economic clearance for North Karanpura, Jharkhand (1,980 mw) and Barh, Bihar (1,980 mw). NTPC proposes to complete the first unit of 660 mw each of these projects in 2006-07, second unit in 2007-08 and third unit in 2008-09. NTPC has launched infrastructure works on 800 mw Kol dam hydro project in Himachal Pradesh. The project, which is expected to receive the CEA clearance shortly, would be commissioned in 2008-09. NTPC had taken over this project from Himachal Pradesh. As far as the 1,000-mw Cheyyur project in Tamil Nadu is concerned, NTPC would prepare a feasibility report after availability of coastal regulation zone clearance and site clearance from the Union ministry of environment and forest. The project is expected to be commissioned in 2011-12.