NTPC to float tenders to meet FY19 capacity addition target

To meet its FY19 capacity addition target of 5,000 MW, state-owned power producer NTPC is coming up with tenders to build for more than 2,900 MW of generation units in this quarter. A top NTPC official said while tenders for two 660 MW units at its Talcher super-critical power plant are almost ready, the company is also planning to begin the tendering process for two 660 MW units at its Singrauli station and two 800 MW units at the Lara power plant. “Brownfield expansion has its own advantages, such as utilisation of existing infrastructure and relief from the complexities of land acquisition,” a company executive said.

The company’s current installed commercial capacity is 51,391 MW and 21,071 MW is currently under various stages of construction. It added 4,423 MW capacity in FY18. The Bihar Cabinet has also recently approved the proposal of NTPC taking over the state government-owned 110 MW thermal power plant. The state cabinet has also cleared the path for the largest power generator of the country acquiring the Bihar government’s stakes in joint ventures which own the Muzaffarpur and Nabinagar power plants.

The company is also in advanced stages of due diligence for two stressed power generation assets. The power generation behemoth expressed interest in taking over stressed power units in late 2017. The 1,200 MW Derang plant of Jindal India Thermal Power; the 1,980 MW Barah plant, run by a subsidiary of Jaiprakash Power Ventures (JPVL) was offered to NTPC by lenders for takeover.

Separately, JPVL also offered its 1,320 MW Nigrie plant to NTPC. Sources said one of the three plants has already been found unfit for takeover, without disclosing the identity of the asset. An official clarified that NTPC would take over only the assets, and not any of the company liabilities.

The company has recently invited tenders for 2,000 MW of solar and wind power each.

It intends to use part of the renewable capacity through the new blending policy, which allows thermal power generation companies, selling power at cost-plus basis, the flexibility of using renewable energy sources to meet their contractual generation obligations under existing terms of power purchase agreements with discoms.

NTPC Limited