<p><em>The financials look sound, and NTPC is optimistic about its expansion plans</em><br><br>By being a consistent performer, NTPC has moved up two notches on the BW 500 list, occupying sixth place this year. NTPC recorded approximately a nine per cent increase in income, and around 10 per cent growth in assets. Roughly the same trend was witnessed last year.<br><br>The past year has been a particularly testing one for NTPC, with coal stocks at rock-bottom resulting in a precarious situation at various plants. NTPC’s thermal plants are designed for a specific quality of (domestic) coal. Considering the huge shortfall, some 30 to 40 per cent imported coal was blended into the domestic supply — something unprecedented for NTPC.<br><br>“Today we have an average supply at our plants of 16 days, which is a very comfortable position compared to last year,” says A.K. Jha, chairman and managing director of NTPC.<br><br>Over the past year, the Maharatna company diversified into hydropower and formed joint ventures with state-run entities. As a result, its asset worth jumped to Rs 197,084 crore from Rs 179,554 crore in the previous year. Its profit after tax, however, took a dip compared to the previous year’s figures — from Rs 10,974 crore to Rs 10,290 crore this fiscal, but this is more due to the fact that it received accumulated dues from DESU last year. With its financials in great shape, NTPC has huge capacity expansion plans, and Jha says they are important if India is to grow at eight per cent.<br><br>With many discoms in bad shape, the demand for electricity is not great. Many private companies are not able to sell electricity as a result. NTPC, has a power generation capacity of 23,004 MW under various phases of completion. Last year, it added about 2,000 MW; this year the target is 2,403 MW, of which 1,115 MW has been achieved.<br><br>Regarding NTPC’s diversification into hydropower last year, the first project was the 800-MW Koaldam power plant in Himachal Pradesh. Two units were commissioned last year; two more will be commissioned this year. Making rapid strides, NTPC recently completed the bidding process for its joint-venture plant in Bangladesh. It is also working on a project with the Sri Lanka electricity board.<br><br>NTPC has also made acquisitions by way of a joint venture between the state of Jharkhand and NTPC – Patratu Thermal Power Station. It will have a capacity of 4,000 MW there. Also the takeover of the Damodar Valley Corporation’s Raghunathpur plant in West Bengal may materialise by the year-end.<br><br>NTPC is focused on renewables in a big way. Jha says: “Till last year, we had 110 MW of solar power in operation. We have a target of 10,000 MW to be added in the next five years.”<br><br>Jha says that instead of a big push, or a quantum leap, it’s the incremental effect over the years that works the best for the organisation, and NTPC is well placed to achieve its target of 128,000 MW of power by 2032. NTPC has had its share of challenges, and coal mining has been one. NTPC was allotted eight coal mines. But the mining process could not be started, mainly because except for one mine, all the others were de-allocated, re-allocated, again de-allocated (by the Supreme Court), and then freshly allocated now.<br><br>NTPC has now diversified along value chain – it is engaged in trading, coal mining, consultancy, equipment manufacturing and distribution (on its own and through joint ventures). With the guiding principle of 24X7 power to all by 2019, NTPC is moving ahead ambitiously. “For power to all by 2019, there has to be sufficient capacity in the system,” says Jha. “NTPC is working towards that. This year we are adding 4,000 to 5,000 MW. Next year onwards, we will be adding 6,000 MW every year.” <br><br><em>— Suman K.Jha</em><br><br>(This story was published in BW | Businessworld Issue Dated 19-10-2015) </p>
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