World Bank Threat To Suspend Loan To Ntpc

Disclosing this at a news conference here yesterday, NTPC chairman & managing director Rajendra Singh said the dues to the NTPC from the state boards amounted to Rs 3,500 crore towards principal and Rs 1,400 crore towards surcharge, interest, etc.

Singh said he had held talks with World Bank officials last week in Washington. The loan was sanctioned in three tranches of $400 million each.

Union minister for power S Venugopalachary, who was present at the news conference, said the issue will be taken up at a chief ministers' conference, to be convened by the Prime Minister this month.

Venugopalachary said NTPC plans to add another 10,000 mw to its generation capacity by the year 2003 which would require huge funds.

 

If the state boards pay their dues on time, the corporation can add at least 1,000 mw each year to the national grid.

This, he said, was important in view of the power shortage in the country.Giving details of the projects which are in the pipeline, Venugopalachary said while work was underway on two projects Vindhyachal (2,000 mw) Unchahal (420 mw) Talcher (2,000 mw), Rihand (1,000 mw), Ramagundam stage III (500 mw), Anta (400 mw) and Auraiya (650 mw) have been closed.

Five greenfield projects Faridabad gas (400 mw), Simhadri (1,000 mw), Hyderabad gas (650 mw), Kaikulam gas (400 mw) and Seepet (2,000 mw) are in the pipeline. Tamil Nadu wants a 2000-mw thermal plant near Madras. Venugopalachary confirmed the Centre's decision to set up a regulatory commission and said the proposal, along with a proposal for changes in the Indian Electricity Act, 1948.

and a comprehensive power policy, will be taken up at the chief ministers' conference.

The minister said the Centre was working on a uniform power purchase agreement (PPA), which will conform to international norms. The finance ministry has agreed to provide assistance for drafting such an agreement. The draft PPA too will be put before the chief ministers' conference.