There is a clarification at the end of this article
NTPC commissioned its fourth power project in the current financial year at Sipat earlier this week, adding 2,160 Mw generation capacity to its kitty of 31,704 Mw. Speaking to Jyoti Mukul, its new Chairman and Managing Director Arup Roy Choudhury says the real challenge will be the 12th Plan, though the company is targetting 5,000 Mw capacity addition every year. Edited Excerpts:
The country will miss the revised power capacity addition target for the 11 Plan. As the biggest power producer in the country, how have you strategised your plans?
The market was sceptical about our project deliveries, but there has been tremendous improvement in working. We have delivered Jhajjar, Korba, Dadri and Sipat. We will be commissioning Farakka and Simhadri next month. With this, we would add 3,100 Mw in 2010-11. Another 5,000 Mw is in the pipeline for 2011-12. This will help us achieve 12,000 Mw in the 11 Plan as against 7,000 Mw in the 10th Plan. The bigger challenge is the 12th Plan. After achieving 5,000 Mw in the last financial year, we should ensure we exceed this limit every year for the next five years.
How much of power capacity addition will be impacted because of the no-go demarcation for coal mining?
Fuel constitute 70 per cent of generation cost. Only one of our mines, Dulanga, falls in the no-go area; hence we do not anticipate much problem. As far as coal linkages are concerned, we have requested Coal India to increase production in their existing mine to meet our requirements. We do not see any problem in getting coal for about 30,000 Mw capacity in six years. By that time we would have developed our own mines and we would have a good system of imported coal.
Isn’t there a conflict between environment and growth?
The no-go areas have been created for environmental reasons but Coal India seems to have created much more afforestation that what they have removed. The country has to take a call on environment and mining which may also include the technology for mining. A stage will come when we will have to opt for only underground mining or coal gasification. That is something the government and coal ministry have to decide.
Even power projects face environmental challenges.
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We are conscious about the technology we use. Therefore, we are only ordering supercritical units where coal consumption and pollution are substantially low and the efficiency of the machine is high. Our plants and their vicinity will be the most environment-friendly in the thermal power sector. Besides, we are looking at renewable and nuclear power, too. By 2030, we should be generating about 70 per cent power from fossil fuel and the remaining from renewable sources.
The western world looks at India and China as big polluters due to their coal-based power generation. Do you agree?
India has just woken up to increase its power generation and that it is an important economic driver. How do you generate power with if not with coal that is available with us? After all, we do not want to be dependent on imports for power just as we are dependent on import of crude oil. There is also a question of affordability, but yes, we should look at other sources of power, including nuclear.
NTPC’s hydro power plans seem to be stuck due to design problems in the case of Kol dam and environmental reasons for projects like Loharinag Pala. Will the company be able to realise its hydro power ambitions?
It depends on the availability of power projects. Most hydro power project sites have not got environmental clearances. We have got delayed in Kol dam, but it will come up in the next financial year. Despite this, we will be the fastest in the country in that size. It is unlike thermal where we know the site we do the survey, there are no surprises. In hydro, it is difficult since hydro capacity is in places where hills are very nascent. Geophysical surprises come up.
Does NTPC plan to put up projects even outside the joint venture with Nuclear Power Corporation of India?
NTPC is one of the richest companies in the country and so if we cannot do a nuclear power plant then who can? It is a win-win situation because the country is looking at a huge nuclear power capacity. We will first do a project with NPCIL and get our basics right. We will generate 1,400 Mw plus power with them. When we get into the act, we will see whether we can develop our own group for nuclear.
On the gas side, do you plan to float tenders for expansion of Kawas and Gandhar projects?
We can float tenders any day. We were a little uncertain about gas but have decided to go ahead with the tender. We need to do a gas-based power plant and if we do not place the order, we will not be able to do it.
NTPC is willing to buy gas from Reliance Industries' D6 field but the current production has already been tied up.
We do not have any idea how much gas is available. Nobody can say. We have approached the government that we have a target of 4,700 Mw of gas projects in the 12th Plan. We have asked for gas at whatever price is fixed by the government. The ongoing legal case (with RIL) can be decided later.
Clarification
NTPC would generate 70 per cent power from fossil fuel by 2030 and the remaining from renewable sources, and not what its chairman, Arup Roy Choudhury, has been wrongly quoted as saying. We regret the error.
