NTPC, whose turnover was up by 19.6 per cent at Rs 17,184 crore during 1999-2000 as regards the previous fiscal, plans to seek more autonomy from the Centre in areas of day-to-day operations, apart from higher limit for investments.

NTPC is also weighing the possibility to float a finance company for garnering funds and make it available on a continuous basis, develop bulk customers such as railways, large steel and aluminium plants, and scout for fund on a perpetual basis rather than on a project-specific basis. It stresses the need for a review of manpower ``to trim out the extra fat and make organisation lighter.''

In a comprehensive paper prepared internally on `Strategies and perspective to make NTPC a global giant,' the corporation has stressed the need for a paradigm shift to generation by entering into strategic agreements on matters of maintenance in a bid to focus more pointedly on its core strength of generation.

NTPC, with an installed capacity of 19,435 mw -- which is around 20 per cent of the country's total capacity -- has generated 1,18,676 million units during 1999-2000 with a plant-load factor of 80.4 per cent.

NTPC, however, feels that its installed capacity is way below the capacities of global players by a whopping one lakh plus: RAO-UES, Russia-1,55,600 mw, France-1,02,000 mw, Eletrob Ras, Brazil-61,312 mw). It has already planned to double its capacity at 40,000 mw by 2012, by which the Centre has promised ``electricity for all.''

Taking a serious note of the low pace of sales realisation, mainly due to increased dues from state electricity boards at around Rs 15,000 crore, NTPC wants to go in for strict adherence of commercial norms of ``sale on pay basis.''

NTPC is of the view that it must adopt acquisition as a ``strategy of growth'' and must scout for good units apart from existing underperforming units, which are up for sale. Furthermore, the uneven spread of primary energy resources and the relatively well-endowed status of neighbouring countries like Nepal and Bangladesh create the potential for trade in power.

NTPC feels that hydel sector presents good opportunity and its forays in this untapped sector would help leverage its expertise in large-scale project management.

Additionally, renovation and modernisation present good business opportunity as an effective way of bridging the demand-supply gap. It would also help in a big way in keeping a tight reign on capital employed per mega watt and associated financial parameters.

According to NTPC, the figure of $5.14 million per mw compares favourably with the industry average of $6.55 million per mw.

NTPC which wants to project its image as a competitive and reliable player in the energy sector, proposes to fine-tune debt management and cost-management strategies.

NTPC stands second in terms of return on capital employed, at 13.5 per cent, despite operating in a suppliers market. However, it admits that there is a vast scope for cost management as its tariff assures a return of 16 per cent for plants post 1992 and its figure of 13.97 per cent for return on equity, stands at seventh.

In addition to this, NTPC proposes to bid for long-term operation and management contracts, both globally and nationally, and set up barge mounted plant as a good alternative, given the risk exposure associated with large infrastructure projects and the lack of exit routes.

To overcome the problem of rising inventories which stand at Rs 1,873.33 crore, NTPC envisages a large scale use of business to business exchange. It plans to explore the possibilities of harnessing the potentially growing area of application service provider for quick and effective office automation.

MAJOR HIGHLIGHTS
Moots organisation restructuring and more autonomy*Review of manpower*Make forays into mergers and acquisitions, power trading and hydel sector*To float a finance company*To scout for funds on a perpetual basis*Increase installed capacity at 50,000 MW*Project as a leading competitive and reliable player