NTPC To Infuse $3.3 Bn To Expand Capacity

Mumbai: NTPC has decided to put in 18 per cent more to spruce up power generation capacity in the year starting April 1 to help meet growing demand. The company plans to infuse $3.3 billion next year, most of it on coal-fired generation capacity, said the source. India''s government estimates the nation loses an estimated 2 percentage points of annual growth to electricity shortages and has plans to add 78,577 megawatts by 2012 to help beat peak hour shortages of up to 13 per cent. NTPC plans to raise its output to 51,000 megawatts in the next five years.

The company will add three new coal-fired units in northern India by March next year, increasing its generation capacity to more than 30,000 megawatts from the current 28,334 megawatts. The company has decided to postpone plans to set up new gas-fired power projects by two years.

NTPC is in talks to import natural gas from Nigeria where it is negotiating a contract to build a 700 megawatt gas- fired plant, he said. The company is also in talks to buy coal from Indonesia. Of this, $127 million will be invested through NTPC''s joint venture with state-owned steelmakers Steel Authority of India, Coal India, National Mineral Development Corp and Rashtriya Ispat Nigam.