NTPC may raise 11th Plan capacity

National Thermal Power Corporation Ltd (NTPC) is planning to enhance its capacity addition programme for the 11th Plan from 11,558 mw to over 17,000 mw. It has also revised the 10th Plan capacity addition target to 9,160 mw.

Earlier, it had announced that it would add 9,370 mw in the 10th Plan and 11,558 mw in the 11th Plan.

The addition of new thermal and hydel power projects identified for implementation are subject to allocation by state governments and upon obtaining necessary statutory approvals, the corporation has told the Bombay Stock Exchange.

NTPC has also informed the BSE that the III 500 mw unit of Rihand Super Thermal Power Project (stage-II:2X500 mw) has been successfully synchronised eight months ahead of the schedule. The unit was scheduled for commissioning in August 2005.

With the commissioning of the III unit, the installed capacity of the project will go up from 1,000 mw to 1,500 mw.

The company has also informed the stock exchange that significant progress has been made in construction of the IV unit of 500 mw.

In addition, the corporation has indicated to the stock exchange that it proposes to import coal to meet the shortfall in coal availability at some of the corporation's stations and has also planned a backward integration plan with regard to liquefied natural gas (LNG).

The company has plans of borrowing Rs 1,000 crore from Life Insurance Corporation during January-March to fund its capital expenditure. Out of this, Rs 500 crore will be borrowed in the form of term loan and the rest will be in the form of issuance of bonds by way of private placement.

The Life Insurance Corporation of India will lend the entire fund.