NTPC signs PPA with Bengal govt for 1,600-Mw project

NTPC, the state-run power producer, signed a power purchase agreement (PPA) with the West Bengal government yesterday for a thermal unit it will be setting up at Katwa (Bardhaman district).

“From the plant, 50 per cent of power will be allocated to the state government, 15 per cent to the ministry of power and 35 per cent to all other constituents in the region. We have no plans to sell it on a merchant basis,” said Arup Roy Choudhury, chairman and managing director.

“The total investment for the 2x800 Mw Katwa project will be Rs 9,600 crore, roughly around Rs 6 crore per Mw. Discussions are also going on for a greenfield (new) project at Santaldih (Purulia district),” he said.

The CMD said NTPC had lined up 17 projects for next year and would be able to add another 5,500 Mw of capacity by the end of 2011-12.

“By the end of the 11th Five-Year Plan (March 2012), our target is to become a 40,000-Mw company. We also have an ambitious plan for the 12th Plan period, as our target is to add a capacity of 25,000 Mw by the end of that plan period,” he said.

Regarding the company’s coal mining plans and the ongoing row on ‘go and no-go areas’, Choudhury said, “Among six coal blocks allotted to us, only one has fallen under the no-go area. We have approached the government regarding this and believe the issue will be solved soon.” It plans to import 12 million tonnes next year.

On the report by the Comptroller and Auditor General of India that NTPC had fallen short of a target to add capacity of 22,430 Mw in the five years ending March 2012, the company said it would have added 13,000 Mw of capacity by March 2012, much above the target of 9,220 Mw set for the period by the Planning Commission.