NTPC -NPCIL JV to take off in 2-3 mnths

Written by Noor Mohammad | Noor Mohammad | New Delhi | Updated: Jan 28 2010, 04:48am hrs
Indias largest power generator NTPC expects its proposed joint venture (JV) with Nuclear Power Corporation (NPCIL) to take off in two to three months. NPCILs management is currently in the process of securing its boards approval for signing the required memorandum of understanding (MoU) with NTPC.

NTPCs board has already cleared the proposal for partnering with NPCIL for its foray into nuclear power generation business. The proposed NTPC-NPCIL JV will be incorporated in two to three months. We will go hand in hand with NPCIL into nuclear business, NTPC chairman RS Sharma told FE. We have already posted 30-40 of our engineers with NPCIL as part of our plan to develop expertise in nuclear power generation, Sharma added. Keen to reduce its dependence on fossil fuels, the company has charted out plan to diversify into renewable and nuclear power generation.

We want to reduce our dependence on fossil fuels and are diversifying toward renewable energy sources. Nuclear is technology of the future, NTPC chief said.

The company is currently generating 82% power from coal and 18% from gas. But it plans to reduce share of coal-based capacity to 70% by 2017. NTPC has recently forayed into hydropower generation business. It expects to add 9,000 mw capacity by 2017. The company also expects to add 2,000 mw nuclear power generation capacity and another 1,000 mw based on renewable sources by the end of the 12th Plan.

The companys plan into diversify into renewable and nuclear power generation is also expected to help in improving fuel security for its coal-based power plants. The domestic coal supply has failed to keep pace with Indias fast-growing electricity requirement. As a result, the countrys dependence on imported coal is growing by the year.

NTPC has bagged five captive coal blocks from the coal ministry for development to meet fuel requirement of its power projects on an assured basis, even as it is looking at acquisition of coal assets abroad. The company also has participating interests in five oil and gas acreages awarded under the National Exploration Licensing Policy (Nelp) regime.