Setting signposts for success

Written by Anupama Airy | Updated: May 24 2008, 06:38am hrs
The $40-billion (in terms of market cap) power company NTPC Limited is Indias largest power generating company. The companys current generation capacity is 29,144 MW.

NTPC, which is also the sixth largest thermal power generator in the world and the second most efficient utility in terms of capacity utilisation, is all set to become a 50,000-MW company by the end of 2012.

During 2007-08, NTPC has posted a net profit of Rs 7,129 crore against Rs 6,864 crore in 2006-07, a growth of about 4%. Its provisional net sales also went up by over 13% to Rs 37,004 crore from Rs 32,595 crore during the same period in the previous year.

According to NTPCs former chairman and managing director T Sankaralingam, The companys current generation capacity of 29,144 MW includes 1,794 MW from joint ventures, while projects worth 16,930 MW are under construction. We plan to become a 50,000-MW company by 2012 and 75,000-MW firm by 2017.

NTPC has lined up a capital outlay of Rs 13,588 crore for 2008-09, while its capital expenditure stood at Rs 8,621 crore. To execute its expansion plans, NTPC had also tied up for loans worth Rs 21,809 crore from various banks and financial institutions.

NTPCs capitalisation has gone up to Rs 1,62,000 crore (as on March 31, 2008), making the company the third largest in the country, Shankaralingam added.

NTPC has also ventured into manufacturing and has announced a new joint venture company with BHEL known as NTPC-BHEL Power Projects Private Limited. Both, NTPC and BHEL have equal stakes in this company at 50% each.

The JVC would carry out engineering, procurement and construction (EPC) contracts for power plants and other infrastructure projects, as well as manufacture and supply equipment for power plants and other infrastructure projects in India and abroad, including plant engineering, project management, quality insurance, quality control, procurement, logistics, site management, erection, and commissioning services.

The JVC shall have an initial authorised and paid up capital of Rs 5 crore equally subscribed by the initial promoters viz, BHEL and NTPC Ltd.

NTPCs core business is engineering, construction, and operation of power generating plants. It also provides consultancy in the area of power plant constructions and power generation to companies in India and abroad.

As on date, the installed capacity of NTPC is 29,144 MW through its 15 coal-based (23,395 MW), 7 gas-based (3,955 MW), and 4 joint venture projects (1,794 MW). NTPC acquired 50% equity of the SAIL Power Supply Corporation Ltd (SPSCL).

This JV company operates the captive power plants of Durgapur (120 MW), Rourkela (120 MW), and Bhilai (74 MW). NTPC also has 28.33% stake in Ratnagiri Gas & Power Private Limited (RGPPL), a joint venture company between NTPC, GAIL, Indian Financial Institutions, and Maharashtra SEB Holding Co Ltd. The present capacity of RGPPL is 1,480 MW.

NTPC has set new benchmarks for the power industry both, in the area of power plant construction and operations. It is providing power at the cheapest average tariff in the country. With its experience and expertise in the power sector, NTPC is extending consultancy services to various organisations in the power business.