NTPC set to foray into power distribution
In a major diversification move, India’s largest power producer, NTPC Ltd, on Friday said it has identified power distribution and coal production as the two big drivers for the company’s future growth.
Addressing employees and directors, NTPC CMD Arup Roy Choudhury said: “Time has come for a paradigm shift in NTPC, for the organisation to prosper and remain relevant for years to
COMPANY CURRENTLY MEETS 90% OF ANNUAL COAL REQUIREMENTS OF 160 MT FROM CIL
come... the key to growth lies in forward and backward integration, to sustain its position as the biggest generator in the country along with steady capacity addition. Coal mining and distribution of power are going to meet fuel requirements and help in sale of power in coming years.”
HT had first reported on October 30 about NTPC’s plans of emerging as one of the major domestic coal-producing companies, with a capacity of up to 300 million tonnes (MT) within the five years. “NTPC wants to be self-reliant in its coal requirements,” Choudhury had said.
Diversification into power distribution is another big move for the company that produces over 43,000 megawatt (MW) of electricity. Choudhury said NTPC has identified power distribution as a major area for growth.
To arrest the huge outgo of foreign exchange for meeting coal imports, power and coal minister Piush Goyal has been batting for raising domestic coal production. He has also announced plans to double Coal India Ltd’s (CIL’s) annual production capacity to 1 billion tonnes by 2019.
With a total power generation capacity of over 43,000 MW, NTPC has in its fold 10 coal blocks, with reserves of around 5 billion tonnes, and production potential of 100 million tonnes of coal.