Ntpc To Float Jv For Renovating Unit
National Thermal Power Corporation (NTPC) is to launch a 50:50 joint-venture company that will undertake renovation programmes both in India and abroad.
The new company, having an authorised capital of Rs 50 crore, will not be involved in building or operating power projects, but will only be renovating them. NTPC has invited all power utilities and equipment suppliers, which have undertaken renovation programmes, to become its partner in the new venture.
NTPC has, however, indicated that it would give more weightage to companies with experience in renovation programmes of hydel power projects.
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Official sources said NTPC would divest its stake in favour of public and financial institutions after it successfully took off, though no time frame had been set for such a move. Sources said that this was because NTPC wanted to limit itself to a minority shareholder and focus on its core areas.
NTPC, which is chiefly a thermal power generating company, had earlier indicated plans of expanding its realm of operation to constructing hydel projects as well as undertaking renovation activities.
All power units have to regularly undertake renovation and modernisation programmes to increase the life of plant. All IPPs have made provisions in their tariffs to fund these operation every three to five years.
The Union power ministry has indicated that it would give preference to companies which want to enter this area since the cost of bringing in 1 mw of power through renovation is much cheaper than creating fresh capacity.
It has effected a cut in the interest rates of the Power Finance Corporation to lend subsidised finances to state electricity boards for these operations. The power ministry has also said that plants with 8000 mw to 13000 mw capacity require R&M work every five years to maintain their capacity.