No risks from huge capacity addition target: NTPC CMD

Allaying apprehensions arising out of company's huge capacity addition target, state-run NTPC Chairman & Managing Director A K Jha today said that India needs to increase power production to achieve over 8 per cent economic growth.
"If we want to increase the economic growth rate of the country to 8 per cent then we have to increase production of power," Jha replied when asked about risks of financial burden due to huge capacity addition target of 23,000 MW in a situation when private players are facing problems.
Elaborating further he said, "We don't think, we will face any such situation. Secondly, all our plants have power purchase agreements. Thus there is no risks related to cost recovery because our plants are backed by power purchase and fuel supply agreements."

At present, the company has a power generation capacity of 23,004 MW which is under different phases of completion.
NTPC has planned to build generation capacity of 128 GW by 2032 with a lot more focus on renewable energy. It plans to build a portfolio of 10 GW of Solar PV capacity in next 5 years.
On the prospects of increase in per capital consumption of power he said, "India's per capita power consumption is 1,000 units whereas it is 3,500 units in China, 14,000 units in the US. The World's average is 3,000 units. If you see the long term (economic growth) projection and growth story of the country then we have to increase the power generation capacity."

About the advantages of long-term planning he said, "If we don't do long-term planning for capacity addition and plan it when demand comes then the deficit will increase."
Explaining further, Jha said, "If we (India) plan to grow at 8 per cent then there would be need of power. Today, there is situation where demand is less. There is variation in demand from quarter to quarter. But it takes five to six years to build a power plant."
NTPC has spent Rs 23,239 crore on its expansion plans in 2014-15 as against planned capital expenditure of Rs 22,400 crore. During the current fiscal, NTPC is also expecting to surpass its capital expenditure target of Rs 23,000 crore.