NTPC looks at retail distribution of power in industrial hubs, SEZs

State-run power producer NTPC is exploring opportunities for retail distribution of power in upcoming mega industrial parks and special economic zones (SEZs). It will do this through its wholly-owned subsidiary, NTPC Electric Supply Company Ltd (NESCL).

It has a joint venture (JV) with the Kerala Industrial Infrastructure Development Corporation for retail distribution of power in industrial parks developed by the latter, SEZs and other industrial areas. The JV, KINESCO Power & Utilities Pvt Ltd, started its operations in February last year.

However, NTPC has not earmarked any investment for this. “The investment proposal will be made according to the available business opportunities. This move will help NTPC in forward integration in the energy chain,” NTPC chairman and managing director Arup Roy Choudhury said.

Set up in 2002, NESCL provides turnkey execution of substations and lines of sub transmission systems and consultancy for project management to utilities. It sets up a network for supply of electricity in a 5 km area around central power generating stations of NTPC.

NTPC had been planning to enter the power distribution business for some time now. It had earlier proposed to set up distribution networks in Kanpur, Patna and Mangalore, among others, but the plan could not fructify.

It produces more than 34,000 Mw. It plans to add 5,000 Mw by the end of this financial year. For the 12th five-year plan, it has plans to add 25,000-35,000 Mw. It has already signed power purchase agreements for about 100,000 Mw.