NTPC SET TO BEGIN DISTRIBUTION FORAY
The National Thermal Power Corporation (NTPC) will soon enter into power
distribution and coal mining business, Union power minister Suresh Prabhu said.
"I have asked NTPC to integrate its operation backward by entering into coal
mining", Prabhu, who was here on a two day visit to Orissa, said.
He said the company has initiated steps to take up power distribution work in
different parts of the country. A new division is being created by the company
to look after this business, he added.
NTPC is currently studying the operations of 13 distribution circles in four
states, namely Madhya Pradesh, Chhatisgarh, Haryana and Maharashtra, with the
aim to take them over under Accelerated Power Development Programme (APDP) on an
experimental basis.
On the basis of its experience in these circles, the company will decide on the
future of entering distribution operation in full fledged manner elsewhere in
the country, Shankar Lingam, director operation of the company, said, In the
distribution business, he said, though the manpower available is very competent,
there are shortcomings with regard to technical and financial aspects which have
bogged down the sector for long.
On coal mining, he said, NTPC intends to enter into joint venture with the Coal
India Ltd (CIL). However, no concrete proposal has been made yet. He said, NTPC
has chalked out plans to add 21,000 mw to its present capacity of 19,000 mw by
2012. This will require a huge investment of about Rs one lakh crore of which 30
per cent - about Rs. 30,000 crore will be in the form of equity. This means the
company has to mobilize about Rs.3,000 crore annually from the internal
resources to fund new projects.
(Courtesy : Business Standard Dec. 9, 2002)
