NTPC plans to set up cement plants on its own after it failed to attract any partner for the new business

The country’s largest electricity producer NTPC plans to set up cement plants on its own after it failed to attract any partner for the new business that will help it utilise and monetise huge amounts of polluting ash generated by its coal-fired projects.It is finalising a proposal that will allow it to source technology for cement manufacturing which will be put to use by NTPC engineers for setting up commercial cement production units.

 The company’ subsidiary, NTPC Vidyut Vyapar Nigam (NVVNL), is finding it difficult to find joint-venture partners for the cement foray. It had invited expression of interest (EoI) for cement manufacturers in March this year to form a 26:74 joint venture to set up cement plants at its six coal-fired projects. The last date for EoI has already been extended twice in the absence of suitable partners.“We are ready to start cement venture on our own as it would help us in commercially utilising fly ash generated by our coal fired plants”, NTPC chairman and managing director Arup Roy Choudhury told ET. “The venture could have a technology partner for which exercise will be started soon,” he added.Fly ash generated after burning coal in power projects is considered ideal for use in manufacture of cement, concrete, bricks and tiles. Cement manufactured using fly ash is usually cheaper than the one based on clinker, or powdered cement.

 The 21 coal-fired power stations of NTPC (including four joint ventures) together produce close to 60 million tonne per annum of fly ash. Roughly half of this or about 28 mtpa of ash is safely utilised by the company through sale to cement units, mine filling, land development and exports.

 The remaining has to be dumped at various ash disposal sites identified by the company. Fly ash is considered an environmental hazard as it increases the level of suspended particulate matter in atmosphere.

 “The cement venture will come handy for NTPC as it will not only help the company save between 10 and 15% on cost in cement manufacturing but also give alternate to disposing off harmful ash,” said an official in the power ministry. It costs around Rs 400 crore for setting up a 1 million tonne per annum (mtpa) cement facility based on fly ash. About 150 kg of ash is needed to produce one tonne of cement.

 As per the plan, NTPC will set up small cement manufacturing units near all its coal-fired plants. Initially the proposal is to start the venture at the company’s coal-fired projects at Korba, Ramagundam, Dadri, Simahdri, Singrauli, Sipat, Vindhyachal, Badarpur, Barh, Rihand, Talcher-Kaniya and Bongaigaon.

 All these projects have been put up for joint venture route by NVVNL. For coal-based power projects entering cement manufacturing is not a new development.All major power producers including Reliance Power , Tata Power have plans to set up cement manufacturing facilities to utilise ash generated from their plants. Public sector steel major SAIL has incorporated a joint venture with Jaiprakash Associated to set up slag-based cement plants at their units at Bokaro and Bhillai.NTPC is the country’s largest fly ash producer because more than 80% of its installed capacity of 32,600 MW is coal-fired. The fly ash production is only expected to grow as its a substantial portion of its capacity addition programme is based on coal.