With private investments drying up with the economic slowdown, the government is banking on cash-rich central public sector undertakings to lead the country?s economic growth by investing in infrastructure projects. In this context, power major
NTPC?s investment plans have come to assume added significance. The company has lined up a capital expenditure of R1.5 lakh crore for the current Plan period (2012-17). But the NTPC management?s performance will be judged by how much of this budgeted amount it would spend eventually. But Arup Roy Choudhury, chairman and managing director of NTPC, who has just completed three years in this post, tells FE?s Noor Mohammad that he is confident the company will achieve its investment target for the 12th Plan. Excerpts:
How is your investment spend for the current Plan progressing?
We achieved a record capex of R19,925 crore during 2012-13, a 24% increase over the preceding year. We have targeted to spend R20,200 crore in the current year 2013-14, with R2,144 crore invested in the first quarter. We will be able to meet our capex target for this year.
Are you satisfied with NTPC?s pace of capacity addition in recent years?
We have added capacity at a record pace over the last three years of 9,000 MW, which works out to 22% of the total capacity added by the company in the last 37 years. In 2012-13, we added 4,170 MW capacity. Before that, we added 2,820 MW and 2,490 MW in 2011-12 and 2010-11, respectively. Last year, in 2012-13, we have also awarded implementation contracts for projects totalling 8,521 MW capacity. A total of 20,064 MW capacity is currently under construction. We have signed power purchase agreements (PPAs) for more than 40,000 MW, with supply starting in the current and the next Plan periods.
How assured are you about the fuel security of your envisaged power projects?
NTPC has emerged as a major player in the captive coal mining segment, with 10 blocks under its belt, which can produce 100 million tonnes of coal a year. A mining developer-cum-operator (MDO) has been appointed for the Pakri Barwadih and Chatti-Bariatu blocks, which are expected to produce 15 and 7 million tonnes of coal a year, respectively. A similar model is also ready for other coal blocks.
How much coal do you plan to import in the current year? How has been NTPC?s experience of directly importing coal?
We expect to import 16 million tonnes of coal to meet the domestic fuel shortfall at our plants this year. Of this, we have already imported 5 million tonnes while orders have been placed for another 7 million tonnes. We will tender soon for the balance. We have made over 20% savings by directly importing coal for our plants.