NTPC to review hydropower capacity addition programme

State-owned power generator NTPC seems to be cautious about capacity addition through hydropower projects after the government recently scrapped its 600-mw Loharinag Pala project in Uttarakhand on resistance by some environmental groups.

NTPC plans to review its hydro-based power generation capacity addition programme. “We are going to think how much commitment we are going to take on hydro,”newly-appointed NTPC chairman Arup Roy Choudhury said in his first interaction with media on Friday.

“We spent a lot of money on the project and it was shelved,” he said, while referring to the Loharinag Pala project. He, however, denied any plan to scale down envisaged capacity addition programme.NTPC has 32,000 mw power generation capacity in place, of which 81.7% is based on coal the rest is gas-fired. The company does not have any hydro-based power generation capacity.

Meanwhile, NTPC has unveiled plans to diversify into hydropower generation in a bid to reduce its dependence on coal-based generation. That is part of its twin strategy to bolster fuel security for its plants and contain expanding footprint.

NTPC has envisaged increasing its installed generation capacity to 75,000 mw from the current 32,000 mw level by 2017 and targeted 17.5% share for hydro generation capacity in its energy mix.

However, NTPC is struggling to meet its capacity addition target. NTPC had envisaged adding 17,000 mw capacity during the current 11th Plan. Against that, it has added 4,800 mw capacity. It expects to commission another 9,000 mw capacity. However, that still leaves a shortfall of over 3,000 mw against the plan target. While NTPC's 1,980 mw Barh-I is running far behind the implementation schedule because of commercial disputes with the Russian contractor, 2,600 mw Kawas and Gandhar project is unable to take off due to non-availability of gas. Meanwhile, 1,980-mw North Karanpura and 600-mw Loharinag Pala have been cancelled.

“Our stress will be on project delivery,” Choudhury said. The company has also identified fuel security as a priority area given that fuel accounts for 70% of generation cost. NTPC's coal imports are projected to rise in coming years and it is also looking at modifying equipment design for its projects keeping that in mind.

The company is also in talks with the government for gas allocation for its envisaged projects. “We are talking with the government for gas linkage. Talks are in an advanced stage,” NTPC chairman said. The company also expects to place equipment supply orders for 25,000 mw capacity by...the end of this financial year.