Qatar money, gas to power NTPC projects

The National Thermal Power Corporation (NTPC) has found an investor willing to pump in money and gas into its power projects "" the Qatar government.

For starters, Qatar plans to enter into a joint venture with NTPC for the expansion of the 350-Mw Kayamkulam gas-fuelled power project in Kerala by 1,950 Mw. The sweetener for the deal is likely to be an assured supply of LPG from Qatar for the project.

"We want a strategic partner who can supply LNG to us to run the project on a long-term basis. The Qatar Investment Board has given an investment proposal and is keen on supplying LNG to India. It makes sense for us as Qatar is also geographically closer," a government official told Business Standard.

The expansion project involves a total investment of Rs 6,000 crore, of which a substantial amount may be provided by Qatar.

"The negotiations with the Qatar government are in the initial stages," a company executive informed.

The plant is currently running below capacity due to constraints in fuel supply. It sells power at around Rs five per unit to meet the peak power demands of Kerala and Tamil Nadu.

Of the 12,600-Mw installed capacity of gas-based power plants in the country, NTPC has got seven power generation plants fuelled by gas or liquid fuel with a commissioned capacity of 3,955 Mw.

The commissioned gas plants through joint ventures have a capacity of 314 Mw. Most are operating at a reduced capacity due to inadequate availability of gas.