Ntpc Mulls Project In Bangladesh

The National Thermal Power Corporation (NTPC) has proposed to set up a 1,000 mw gas-based power project in Bangladesh. This is the first time that the corporation is considering projects abroad.

Disclosing this at a press conference here yesterday, NTPC chairman Rajendra Singh said the corporation has sent a proposal to the Bangladesh government to set up a gas-based power project on a joint-venture basis.

Singh refused to specify the investment profile of the project, but said it envisaged selling of surplus power from the project to India.

He added that a committee would look into the prospects of NTPC setting up a gas-based power plant in Bangladesh. As per the proposal, the joint venture company that will take up the project will be between NTPC, Bangladesh Power Development Board and any private gas supplier, he said.

Singh also said that with dues from state electricity boards mounting to Rs 8,500 crore, NTPC has asked the Centre to stand guarantee for default in payments from the states for power supplied.

The Rs 8,500 crore outstanding includes a principal of Rs 5,339.13 crore and a surcharge of Rs 3,199.53 crore, Singh said.

He also said that future state projects will be based on a firm power purchase agreement (PPA) along with an escrow cover from the concerned state as well as a tripartite agreement involving the state and the Reserve Bank of India. This agreement will enable NTPC to recover outstanding dues from the state's RBI account, Singh added.

On NTPC's performance, Singh said the corporation recorded profit (before tax) of Rs 2,273.50 crore during 1997-98, up 31.9 per cent from in the previous fiscal.

The approved outlay for 1998-99 for capital schemes of NTPC is Rs 2,796.72 crore, which consist of Rs 1,974.52 crore for approved and on-going projects.

Singh also said that the Orissa government had dropped its claim for 12 per cent free power from the 2,000 mw Talcher power project and is now expected to taken up for implementation.