Strenuous efforts needed to boost NTPC's performance:Par panel

A Parliamentary panel today asked the government to make strenuous efforts to improve the performance of state-run power giant NTPC in the backdrop of lower capital expenditure of Rs 2.19 lakh crore projected in the 12th Plan period (2012-17).
The Parliamentary Standing Committee on Energy chaired by Virendra Kumar also asked the government to take "pre-emptive steps so that lesser expenditure during the 12th Plan should not result in truncated target for NTPC for capacity addition during 13th Plan."
In a report tabled in the Parliament today, the committee noted that a projection of Rs 2,19,613 crore was made as Plan outlay for NTPC for the 12th Plan.

However, the committee found that the actual expenditure (cumulative for 4 years of 12th Plan) is expected to be around Rs 89,000 crore.
The panel also noted that it is expected that at the end of the 12th Plan, Rs 1,20,700 crore will be utilised as one more year is still to go in the Plan period.
It found that even if the expected expenditure of Rs 1,20,700 crore at the end of the 12th Plan is achieved, there will be a huge shortfall of Rs 98,913 crore which stands for 45 per cent of the target.

The Power Ministry, besides other reasons, has attributed scrapping of projects worth Rs 26,646 crore by NTPC to the less planned expenditure during the 12th Plan period.

It also observed that NTPC has been assigned a target (of adding) 11,920 MW of generation capacity during 12th Plan and against this, 9,550 MW has already been achieved. It is expected that the target will be surpassed by the end of 12th Plan.
The committee, noting that financial expenditure and physical performance have a direct correlation, asked the Power Ministry to explain as to how capacity addition targets have been fully achieved despite incurring only half of the expenditure (targetted).
As per the report, the Power Ministry has indicated that un-utilised expenditure is related to the projects meant for 13th Plan period.

"In this context, the committee expresses its unhappiness with the financial performance of NTPC during 12th Plan. The excuse that the planning in regard to expected expenditure by NTPC was done much before the start of the 12th Plan is not acceptable.
"A deviation of 15-20 per cent in any plan is justified, but shortfall of almost half of the target compels the committee to infer that either the planning was flawed or there were lapses in its execution," the panel said.
It also said that NTPC should not lose its share of capacity addition to the private sector in power generation due to short term demand fluctuation. Rather, it should endeavour to compete well with the private sector which, despite all odds, has performed outstandingly.