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NTPC currently accounts for 19% of installed power generation capacity in the country but accounts for 29% of the total power generated in the country.
Sipat, the first super critical unit of the company that synchronised on Feb 2011 has achieved full load in June 2011.
Commercial operation of 500 MW Simhadri Unit #3 commenced on September 16, 2011. Similarly 500 MW Farakka Stage III and 660 MW Sipat Unit #1 will happen in few days. These three units with an aggregate generation capacity of 1660 MW turning commercial in quick succession in the first half of current fiscal itself, the company will overtake the 1600 MW capacity declared commercial in entire full fiscal.
India's GDP to grow in the range of 8-9%, the power sector will have to demonstrate commensurate growth. The Peak power shortage at the end of the year 2010-11 was at 10.3% and energy shortage was 7.5% despite poor per capita power consumption of only 725 units. This highlights the enormous power deficit in the country which translates into huge growth potential for power sector growth. However for a sustainable growth in the power sector financial health of about 90 distribution utilities in the states needs to improve. Another issue of very special emphasis for growth of the sector is adequate coal/fuel supply for power generation.
Distribution reform is at the core of creating the condition for rapid growth of an efficient power sector and requires concerted action by all stakeholders. Narrowing down or eliminating the gap between unit cost of supply and revenue realisation is necessary for financial rejuvenation and sustainability of the sector. The state utilities are faced with continuous rise in the distribution losses, which unless otherwise reversed will reach a loss of Rs 1.5 lakh crore by 2014-15. Currently some state utilities due to their financial constraints are resorting to load shedding rather than buying power. This is clearly unsustainable.
The gap in revenue and cost and resultant losses to state utilities are largely on account of non revision of tariff for several years by many SERCs. Ministry of power has taken up the matter of distribution losses of state utilites with the suggestion that such losses should be accounted for in the fiscal deficit of the respective states. The central government is also suggesting that state regulators invoke their suo moto power for revising power tariffs.
Once the distribution segment is taken care of, the strengths of the power sector with an enabling statutory and regulatory framework and strong performance of central sector power companies can be more effectively leveraged.
Capacity addition in the 11th five year plan is expected to be 11770 MW. The company has already commissioned about 7450 MW compared to an entire full plan period target of 9220 MW. New capacity likely to be executed during the 11th plan will be nearly double the new capacity executed during the 10th plan period.
The company during 2010-11 has signed PPA with beneficiary utilities for an aggregate capacity of 49000 MW. Adding this to the existing capacity and the PPAs already signed, the total capacity for which sale of power is ensured works out to about 100000 MW, which gives assured growth for the company.
In addition there is ample scope for brown field capacity addition in the existing stations. Moreover there is also nuclear and renewable capacity planned by the company. Considering all these, the company targets 128000 MW capacity by end of 15th plan i.e.2031-32.
Currently the company has 14088 MW capacity under construction and 18471 MW capacity is under bidding. Feasibility reports have been approved for a capacity of 14666 MW. It is preparing feasibility reports for an additional basket of 16272 MW capacity.
The company is taking steps to accelerate capacity addition - 1) thrust on backward integration by getting into manufacturing power equipments through JV company with BHEL; 2) improvement in the procurement and contracting systems; 3) radical changes in project layout engineering leading to reduction in land required for power project and township; 4) restructuring of land acquisition function involving experts and local population etc.; 5) closer interface with the MoEF; 6) strengthening and empowering regions and stations; and 7) effective management of contractual issues.
Time taken from the date of NIT to finalisation of the contract has drastically come down to 35 days on the back of modified system and process of awarding civil packages. Vendor enlistment has also been done for some major packages and the process is on for other important packages.
The company has also taken elaborate steps to anticipate and resolve the 'last mile issues' with BHEL and other contractors concerning its projects under construction which are to be completed during 2011-12 and 2012-13 so as to ensure timely implementation of the projects as per contract dates. Since STPS are large in size and complex in nature involving a number of agencies and issues the company has taken initiatives to pre-empt contractual disputes and has also put up a mechanism for resolving them quickly and effectively.
The Dulanga Coal Mine with geological reserves of 245 MMT and mining capacity of 7 MTPA had been declared to fall under no-go area. This mine was taken out of the no go list and various activities concerning this mine project have been started.
CIL always supplies well over 90% of its contracted quantity. The company is the only one that has longterm fuel supply agreement with Coal India spanning 20 years. To meet the gap in its fuel requirements the company has also tied up with STC for 12 MMT of imported coal apart from supplies from CIL and SCCL. Moreover the company has also taken initiatives to import 4 MMT of coal on its own and bid opening is scheduled in the near feature.
NTPC is also exploring coal acquisition opportunities in Indonesia, Mozambique, Australia and South Africa. The process of identifying mines is going on. Once techno economic feasibility and right price is achieved after due diligence in any proposal, the company will acquire the mine or a stake in the mine.
In the long term, the company expects to reach a coal supply arrangement comprising 70% from CIL and its subsidiaries, 20% from company's own captive coal mines and 10% from imports and e-auction coal.
The company has appointed Mine Developer cum Operator (MDO) for NTPC's first coal mine at Pakri Barwadih with 15 MTPA capacity in 2010-11. Similarly the appointment of MDO for Chatti-Bariatu (7 MTPA) is underway and the bid opening for appointment of MDO is scheduled in the near future.
Pursuing with the MoP and Ministry of Petroleum & Natural Gas for allocation of natural gas for 3650 MW capacity at Kawas, Gandhar and Kayamkular for consideration by the Empowered Group of Ministers.
Budgeted capex for FY12 is over Rs 26000 crore for the company and for the NTPC Group it was about Rs 30000 crore.
NTPC Vidyut Vyapar Nigam (NVVN), the nodal agency for implementation of first stage of Jawaharlal Nehru National Solar Mission has already signed PPA with developers for about 700 MW as against mandated 1000 MW capacity.
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India Infoline Research Team / 14:59, May 20, 2015
GPIL reported 13.5% yoy decline in operating profit as the impact of higher volumes was offset by lower product prices