NTPC to scale down 12th Plan capacity target to 66,000 MW

Non-availability of gas and land acquisition issues may force state-owned power utility NTPC to scale down its capacity addition target of 75,000 MW for the 12th Five-Year Plan to 66,000 MW.

"Around 5,000-MW of gas-based capacity looks difficult, as there is no gas available, and another 4,000 MW because of the land acquisition problems," a Power Ministry official said.

On being asked whether coal shortages would also impact the company's capacity augmentation plans, he said, "Coal shortage is there, but land acquisition is a bigger issue."

NTPC currently operates assets with a combined capacity of over 34,000 MW, spanning most conventional energy sources.

The projects that are likely to be impacted due to fuel shortages are the expansion of the company's gas-based plants at Kawas and Gandhar (Gujarat), Dadri and Auraiya (UP), Anta (Rajasthan) and Faridabad (Haryana).

NTPC had earlier chalked out ambitious expansion plans for these projects, but the company has not been assured of any fuel for these plants by the government and purchasing gas from the open market is not a feasible option as it would lead to an increase in electricity tariffs.

"The company is also facing difficulty in acquiring land for its projects," the official said.

At present, NTPC is working on a basket of projects of about 40,000 MW capacity. Projects with capacity of over 14,000 MW are already at various stages of implementation.

It added capacity of about 2,500 MW during 2010-11 by commissioning the Dadri (490 MW), Korba (500 MW), Farakka (500 MW), Simhadri (500 MW) and Jhajjar (500 MW) units.

NTPC has mobilised loans worth Rs 10,000 crore from State Bank of India this fiscal (2011-12). It also secured a $300 million loan from Bank of Tokyo-Mitsubishi UFJ Ltd, Singapore.