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NTPC plans Rs 15,000 crore fundraising to fuel expansion

A total of five projects to add capacity of 8,768 mw are at the tendering stage – Barethi (Madhya Pradesh), Pudimadaka (Andhra Pradesh), Khulna (Bangladesh), Durgapur (West Bengal) and Solar (Rajasthan, Madhya Pradesh, etc.)

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NTPC plans to raise Rs 15,000 crore on expansion in the next two years.

The Maharatna company plans to triple its power generation capacity by 2032 to 128,000 megawatt (mw). "Raising funds is an ongoing process. The current funds will be for 2016-17 and 2017-18," said Gurdeep Singh, chairman and managing director of NTPC.

A total of five projects to add capacity of 8,768 mw are at the tendering stage – Barethi (Madhya Pradesh), Pudimadaka (Andhra Pradesh), Khulna (Bangladesh), Durgapur (West Bengal) and Solar (Rajasthan, Madhya Pradesh, etc.)

The Board approved the plans to raise capital on July 29. Now it has to be cleared in the annual general meeting scheduled in September.

For fiscal 2017, the company has chalked out a capital expenditure plan of Rs 30,000 crore to add another 4,500 mw power generation capacity to meet rising electricity demand.

"For the financial year 2017, the capex outlay of NTPC is Rs 30,000 crore to increase the power generation capacity. The capex of Rs 5,538 crore incurred in Q1 of FY17," NTPC chairman and MD Gurdeep Singh said.

During fiscal 2016, the company spent Rs 25,737 crore towards capex plans as against Rs 23,239 crore in the preceding year.

At present, NTPC generates 47,178 mw while its solar capacity is 360 mw, or 0.76% of the total capacity. The solar capacity is slated to shoot up to 10,000 mw by 2022 as against the overall capacity of 64,000 mw by 2022, or about 15.5% of the overall share.

In 2015-16 NTPC added 2,255 mw. At present, projects of 24,059 mw are under construction and will be ready in the next couple of years.

Among the coal-based projects, it is setting up a 1,980 mw unit at Barh in Bihar, 2,400 mw unit at Kudgi in Karnataka, 1320 mw at Solapur in Maharashtra, 1600 mw at Lara in Chhattisgarh, 1,600 mw at Gadarwara in Madhya Pradesh, 1320 mw at Tanda in Uttar Pradesh and 1600 mw at Telangana.

This year NTPC will add 4,500 mw (of which 1,000 mw will be solar power) followed by 2,500 mw every consecutive year.

"Earlier solar power tariff was as high at Rs 16 per unit, now it has come down to around Rs 5 per unit," said Subhasis Ghosh, regional executive director of Western Region-I, NTPC. Under the Nehru Solar Mission, the solar power per unit may be available for Rs 4.34.

Singh said that the average purchase cost per unit for power distribution companies is Rs 3.50 as compared to Rs 3.04 that NTPC provides at.

In the overseas market, the company has set up 50:50 JV with Bangladesh Power Development Board to set up 2X660 mw thermal power project at Khulna in Bangladesh.

It has also set up 50:50 JV with Ceylon Electricity Board to undertake the development, construction, operation and maintenance coal based electricity generating station of 2X250 MW capacity at Trincomalee in Sri Lanka.

"The power generation company will diversify into fertiliser production," said Singh.

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