NTPC, which has a cash reserve of about Rs 18000 crore, has been approached by banks to acquire some stressed power plants as the assets have become non-performing assets (NPAs) to the lenders. "We are doing due diligence for a couple of such stranded power plants," NTPC chairman Arup Roy Choudhury said.
He, however, refused to share details of the plants. "We have to look into a lot of aspects. If the equipments are like that of Bhel, of course that will help us as those are similar to that of us. But if it's chinese equipment, we will have to do an audit," he said
More From This Section
"If required, we will engage a third party to the due diligence after we do ours," he said.
"We have often been asked how we are going to use the cash reserve. We can partially use that to acquire power assets and coal blocks," he noted.
NTPC recently bagged four coal blocks, and with this it has about five billion tonnes. The power major is working to statrt coal mining in some of its existing mine in Jharkhand and Chhattishgarh. "We hope to produce nearly 100 million tonne coal over the next five to six years, which will be one third of our requirement," he said.
Katwa project now loses coal linkage:
While NTPC claimed it was on the verge of sorting out the land issue with its long-pending Katwa project in West Bengal, it is now hit by coal hurdles.
"We have 5645 acre and we need just need 150 acres of land more for 1320 Mw-Katwa thermal power project. Almost 99 per cent of the owners of 150 acres have given their consent But the Damagoria coal block which was linked to the project had been surrendered by the state government," NTPC chairman and managing director Arup Roy Chowdhury said.
West Bengal Power Development Corporation Ltd (WBPDCL) has surrendered the Damagoria coal block as locals there opposed to land acquisition for the mining project.We will talk to the state government for the land and coal linkage issue," Chowdhury said. The project would require seven million tonne of coal annually.
"New land law to delay project":
Speaking on the new land law -- The Right to Fair Compensation and Transparency in Land Acquisition, Rehabilitation and Resettlement Bill, 2012, which would replace the Land Acquisition Act, 1894, NTPC chairman said, it would make land acquisition process more time consuming.
"Land acquisition may take little more time with the new law. According to our estimate, it will take 48 to 53 months as against 36 months earlier," Choudhury said.
"But, I do not think our existing projects will not get hampered as they are already in various stage. I think, we need start the whole process bit earlier from now on," he added