NTPC drafts overseas strategy

Power major's plans include acquisition of coal blocks in Indonesia, Australia.

NTPC Ltd has charted an aggressive overseas growth strategy that includes plans to acquire coal mining blocks in Indonesia and Australia and gas blocks in Nigeria and West Asia.

The power generation major is also in the process of shortlisting partners for National Exploration Licensing Policy-VI for natural gas.

It is also looking at overseas gas exploration opportunities, including Australia, Indonesia, Qatar and United Arab Emirates.

It will soon sign a joint venture with Singareni Collieries Company Ltd for exploration of overseas coal mining opportunities.

The company is targeting a production capacity of 15 million tonnes (mt) of coal per year from its proposed coal blocks operations in Indonesia and Australia.

"Production may start in 2007-08 from the overseas coal blocks," a senior company official told Business Standard. NTPC plants required 108 mt of coal in 2005-06, of which 3.8 mt was imported.

In another development, the company has drawn up an elaborate plan of receiving gas from Nigeria in exchange for strengthening the country's power generation capacity.

"The proposal will be divided on three parameters "" short-term, medium term and long term in lieu of gas supply," the official said. The plan will be sent to the Nigerian government for its consideration by next fortnight.

The short-term plans include providing services for the management of Nigeria's power stations, so that existing plants become operational.

The medium-term plans include setting up a 700-Mw gas-fuelled power station involving an investment of Rs 2,450 crore. The company may later go in for a joint venture arrangement for the same.

The long-term plans propose, among others, setting up a 500 Mw coal-based power station involving an investment of Rs 2,500 crore.

NTPC Ltd is also confident that the expansion programme of its existing projects will help in commissioning 3710 Mw of power in 2006-07.

Currently, work is on for 9470 Mw. The company plans to commission 1,160 Mw in 2007-08 and 4,030 Mw in 2008-09 respectively.

NTPC does not have any short-term plans to tap debt funds from the international market. It has established a mid-term note programme for $1 billion to tap debt funds from the international market to finance its capital expenditure.