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Plans to become 130 GW company by 2032: Kulamani Biswal, CFO, NTPC

Plans to become 130 GW company by 2032: Kulamani Biswal, CFO, NTPC


ET Now: Tell us a little bit more about the capacity addition plans in thermal segment and what kind of capacity can be commissioned by NTPC in the next 12 months or so? K Biswal: Yes, as of now we are having 48 gigawatts and 23 gigawatts under construction and it will be completed in next two to three years. By 2020, our capacity would surpass 70 gigawatts and our now about 3000 megawatt is under ordering stage. We have a plan to add every year 2 to 2.5 gigawatts thermal power plants. Apart from that, we have a target to add 10 gigawatts solar capacity by 2022. So every year, we will place order of our own 2 gigawatts or more from next year onwards. Also, this year we have entered into wind power, we are constructing 50 megawatt wind power this year, next year we have a target to add 200­400 wind power capacity and also we will increase our wind capacity going forward. We have a long term plan of achieving 130 gigawatts by 2032. Mostly, we are more interested into renewable energy and by 2032 our capacity composition would be 65% thermal and solar based power plants on balance would be non­fossil fuel basically renewable and hydro.

ET Now: You have been of course aiming to set up solar and renewable power generation plants which could add up to about 30% of your overall capacity as well. Can you tell us more about the projects which are on currently the capex requirements for this as well?

K Biswal: Now in solar, whatever capacity we presently have 23 gigawatts mostly coal based thermal power plants like we have Kudgi, Solapur, and Darlipali in Odisha, North Karanpura in Jharkhand, we have Gadarwara and Bongaigaon, Nabinagar in Bihar these projects are under construction. Similarly, we are also interested to go for Brownfield plant like TTPS, Talcher, Singrauli. We are also going to install 2400 capacity at Gajamara, Odisha so these are the plants are in our ordering stage as well as under construction and the super capex is concerned this year our target was 30000 crore and we are going to achieve around 27000 crore and next year also similar size of a capex we are going to spin around 28000 crore INR we are going to spend next year 2017­2018.

ET Now: What kind of funding would you require for the capex in the next 12 to 15 months?

K Biswal: If you see our funding structure 40% we raise from the banks and 30% from the domestic market in terms of funds and also 30% from the foreign markets. Recently, we have concluded our bill euro issue that was the first of its kind in Asia and also that we have gone for 10 years euro bonds with a very attractive rate of interest 2.75 from this year point of view and few months back we raised 2000 crore from the foreign market through rupee denominated masala bonds and that entire 2000 crore would be utilised towards our renewable projects.

ET Now: We recently heard the power minister say that they are looking to scrap your old plants with more better output and low polluting plants as well. How are you working on this?

Kulamani Biswal: Presently, we have identified two plants. Our TTPS, it is a very old plant. It was created during 60s and 70s. Recently, we celebrated its 50 years golden jubilee and these plants’ life has been extended to 2021 by CERC. But we will now put 2×6 system MW in TTPS. So by the time the new plant is ready, we will dismantle the older one. Similarly, we have a plan to replace the Singrauli plant. It is also more than 35 years old.

ET Now: You planned to set up cement plants and are scouting for a partner here. What is the rationale, when does this see the light of the day?

Kulamani Biswal: As you know that fly ash management is challenge for thermal power plant because we are mainly into coal­based thermal power plants. We want to manage our fly ash in a befitting manner so that is why we are going for some partners to have a cement power plant. Basically, in eastern region our ash disposal is below the territory level. It is basically to manage our fly ash and to convert the challenge into opportunity so that we can go forward. We are interested to participate in investment so that the fly ash which is a challenge now for the environment we can convert into building materials that is our intention.

ET Now: What opportunities does NTPC have overseas and how are rising coal cost going to impact your financials?

Kulamani Biswal: Overseas, we are constructing two plants – one in Bangladesh that plant is in advance stage for financial closure. Once the financial closure is achieved, then we will go ahead with construction of power plant. Similarly, we are going to put 2×250 megawatt in Sri Lanka. Apart from that, also we are interested going beyond the SAARC countries. We are now looking for the opportunities beyond SAARC countries. We are fully regulated, coal cost is a pass through. So whatever cost is increasing, it will be passed on to the consumers. But to reduce the impact, now the government has allowed us tangibility. We can take coal from any mines to our any plants. So, now we are trying to source our coal from the nearest mines so that transportation cost is reduced and ultimately energy charges reduced and benefit is passed on to the consumers.

Anand Gupta Editor - EQ Int'l Media Network


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