NTPC plans for 4150 MW capacity addition in 2010-11

Despite the fact that the NTPC achieved only 47.27% of its capacity addition goal of 3,300 MW for the fiscal-ended March 31, 2010, the state-run power utility has high ambitions of adding 4,150 MW of new capacity during the ongoing fiscal. The power major commisioned four thermal power units, one each, at Kahalgaon (500 MW), and Dadri (490 MW), along with two units of 640 MW and 110 MW, respectively, at Dabhol, in Maharashtra, and at the Kanti Stage-I project, in Bihar, cumulatively totaling to a capacity of 1,740 MW. However, its Dabhol power project, operated by Ratnagiri Gas Power Private Limited, a subsidiary, has been derated by 180 MW, implying a net capacity addition of only 1560 MW.

Given this lackluster scenario, NTPC's target for this fiscal, a figure that is 25% higher than the previous year's target, seems a tad bit too ambitious. NTPC expects to commission a shelf of eight thermal units-- 660 MW Sipat Stage-I; two 500 MW units at Jhajjar; 500 MW Korba-III, unit-7; 500 MW Farakka-III, Unit-6; a 490 MW unit at Dadri stage-II; and two 500 MW units at Simhadri stage-II-- in order to meet its goal. The power major intends to add a total of 22,430 MW during the 11th Plan period, of which projects worth only 3,240 MW have been commissioned, as of March 31, 2009, while 17,830 MW is under various stages of implementation.

To meet the fuel requirements for these coal-fired power projects, NTPC plans to import 14 million tonnes of coal during 2010-11, in addition to procuring more domestic coal. The company is in the process of acquiring stakes in overseas collieries to ensure fuel security for its upcoming coal-based power stations in the country. To this end, the state-run utility has also signed a coal supply agreement with Coal India Limited (CIL), for the supply of coal to its coal-fired power stations, for a period of 20 years.