Showing posts with label NTPC. Show all posts
Showing posts with label NTPC. Show all posts

Saturday, February 26, 2011

Capacity addition failure haunts NTPC

The power ministry has asked NTPC Ltd to add 5,000 megawatt (MW) capacity annually from next year. For now, it seems like a pipe dream.

Also See | Keeping Pace (PDF)

That number is a tad less than the approximately 6,000MW it has added since fiscal 2008. In the past couple of years, the firm’s execution record has been poor. Take the 11th Plan (fiscal 2008-2012), during which NTPC was expected to add some 22,400MW. Even if it installs 5,000MW in the year to April 2012, it will have fallen some 50% short of its target.

Yet, for a company that enjoys regulated 15.5% return on equity (RoE), it is capacity addition that will make it more attractive for investors.

The delay in building new factories is roughing up its profits as well. For the quarter ended December, NTPC’s power generation grew by a measly 0.2% from a year ago. Grid problems and the parlous finances of state electricity boards, its main consumers, also meant that some of them could not take delivery of contracted power. As a result, energy units actually delivered rose 0.8%. However, revenue grew 20% from a year ago. This was due to a 23% rise in fuel costs (a pass through in the assured RoE model), due to a price hike by main supplier Coal India Ltd at the end of December 2009.

A rise in employee and other costs means that earnings before interest, tax, depreciation and amortization grew 10%. Higher taxes (moving to minimum alternate tax due to an increase in RoE) have also hit the profits and net profit grew 0.3% from a year ago. Shorn of some one-offs, such as prior period sales, the new tax norms and a change in depreciation policy, the adjusted profit after tax shows a growth of 11%, in line with estimates.

But that isn’t overly impressive. Many brokerages have cut down their earnings estimates for the next two years. That, coupled with the execution track record, has meant that investors are not very gung-ho about NTPC. For a stock that is considered a defensive bet, its returns mirror those of the Sensex since the beginning of this year. The numbers are more telling since the firm declared its results. Since then, NTPC has underperformed the benchmark index by 7.5%.

Wednesday, February 23, 2011

PGCIL executives meet Nigerian Power Minister

Power Grid Corporation of India Ltd executives have met with Nigerian Minister of State for Power Nuhu Wya to buttress their case for assuming management control of Transmission Company of Nigeria after emerging as the lowest bidder for the role in a 2007 auction.

The Indian High Commissioner to Nigeria, Mahesh Sachdev, led a delegation of representatives from PGCIL and India's National Thermal Power Corporation (NTPC) to the office of the minister in the country's capital, Abuja.

He said the delegation had come to restate its commitment to work for the improvement of the Nigerian transmission system "for faster economic transformation".

"... India and Nigeria could be economic talking points of the globe in the next decade if they work together and appropriately deploy their surplus natural and human gifts," Sachdev said.

Wya was thankful for the visit even as he observed that diplomatic relations between India and Nigeria have improved greatly due to what he called the versatility and commitment of Sachdev since his arrival in Nigeria.

He stressed on the efforts made by the country to improve electricity demand under a new roadmap, which he outlined to the representatives.

PGCIL had said on its website recently that it was the lowest bidder amongst the three parties that submitted offers for management of Nigeria's transmission company.

"We had been short-listed two to three years back, but there had been delays and now we been named the lowest bidder," PGCIL Chairman S K Chaturvedi said.

Nigerian President Goodluck Jonathan, who faces two serious challengers in elections scheduled for April, has vowed to tackle the highly erratic power supply situation in the country.

Friday, February 11, 2011

HCC receives INR2.32 billion contract for Thermal Power Project construction | TradingMarkets.com

Hindustan Construction Company, or HCC, Ltd, an India-based infrastructure construction and development company, has received a contract from Kanti Bijlee Utpadan Nigam Limited, a JV company of NTPC & BSEB, to construct 2X195MW Muzaffarpur Thermal Power Project, Stage II in Bihar at INR2.32 billion.

The scope of work involves Earthwork, RCC, and Structural Steel Fabrication & Erection for Power House, Main Plant, CW and other Offsite works with Chimney & Chimney Elevator works. The project will be completed in 34 months.

HCC has been associated with 18 thermal power projects (Diesel and Coal based) and 3 gas based power projects. The company's experience in thermal power plants cover a range of civil works including; earth work, piling, water intake and pump house, heavy foundations, main structures, steelworks and coal handling systems. The company also has expertise in construction of associated structures such as cooling towers and chimneys.http://www.datamonitor.com

Source: HCC receives INR2.32 billion contract for Thermal Power Project construction | TradingMarkets.com

Sagardighi Thermal Plant Construction to Begin in Two Months


NTPC Ltd., India’s biggest power producer, is in talks with Toshiba Corp. to hire the Japanese company for building a pilot project in India to capture and store carbon emissions, a Toshiba official said.
The Japanese power-equipment maker aims to develop its first 5-megawatt carbon capture plant in India by 2016, Kenji Urai, managing director of its Toshiba India Private Ltd. unit, said in an interview. The project may be similar to one set to start running in 2011 at a 47-megawatt plant at Mikawa in Japan.
“Now that we are almost finished in Japan, we’d like to bring that technology to other parts of the world, like India,” Urai said. “I think in five years we should have it.”
India plans to add about 64,000 megawatts, or the equivalent of more than 50 new nuclear plants, in coal-fired electric plants in the five years through 2017. The nation is searching for ways to reduce carbon-dioxide emissions after having agreed to reduce the greenhouse gas in proportion to gross domestic product by 25 percent from 2005 levels by 2020.
NTPC is leading a group of emerging power utilities trying to curb Indian blackouts and increase electricity supplies, which the government estimates are about 10 percent less than demand.
Deepna Mehta, a spokeswoman for NTPC, said company officials declined to comment.
Carbon capture-and-storage technology typically traps emissions and pumps them underground for what its promoters say is safe, permanent storage. So far it has mostly been used in pilot projects and on part of a generator’s total emissions. Critics have pointed to cost.
“It’s certainly not economically feasible because if we fit CCS equipment to a coal-based plant, it would double the investment,” said Shyam Saran during a seminar in New Delhi in April. Saran quit his post as special envoy to the prime minister on climate change in February.

Toshiba in India

Toshiba, Japan’s largest supplier of nuclear reactors, entered the Indian power market through a joint venture with Indian power utility JSW Energy Ltd. Toshiba plans to sell $400 million worth of power-generation equipment in India by 2015.
Through two joint ventures, Toshiba and JSW will open a plant in July in Chennai to make 3,000 megawatts of boilers and turbines a year, Urai said.
The joint venture is expecting orders from NTPC for four 660-megawatt turbines this year and has already received orders for two 660-megawatt turbines and generators from Essar Group for its coal-fired Salaya plant in Gujarat.
Source: Sagardighi Thermal Plant Construction to Begin in Two Months - Power Technology

Thursday, February 10, 2011

NTPC bestowed with most Respected Power CO. Award

NTPC, the largest power utility in the country has been bestowed with the honour of being most respected company in Power Sector for the year 2011 by Businessworld. The Award was presented by Shri Pranab Mukherjee, Union Minister of Finance to Shri Arup Roy Choudhury, CMD, NTPC at a function in New Delhi.

NTPC has been awarded for its innovativeness, depth and quality of top management, ethics, transparency, quality of product/ services, people practices, global competitiveness, financial performance and return to shareholders.

The selection is based on a survey by Ipsos Indica Research of 249 companies based on 757 respondents in phase I and 506 respondents in phase II.

NTPC lights up every third bulb in the country with a total installed capacity of over 33000 MW and plans to be a 75000MW company by 2017.

Source: Print Release

Wednesday, February 9, 2011

Orissa govt plans barrages on the Mahanad

The Chhattisgarh government has planned to construct seven barrages on the Mahanadi river for providing water to the industries coming up in the districts along the river. The state government is investing Rs 1,467 crore for constructing the barrages, of which four would come up in Janjgir-Champa district and the remaining three barrages in Raigarh and Raipur districts. The government would, however, get a tax of Rs 628 crore annually for the water it would give to the industries. The project was likely to be completed in three years. The construction of barrages would also help increasing the ground water level that would aid irrigation. The major names include National Thermal Power Corporation (NTPC), Ispat Industries Limited, Jindal India Limited, Toronto Power Limited, Moser Baer Limited, GMR Energy, Lanco Amarkantak and Essar among others.

Tuesday, February 8, 2011

BJP MP threatens economic blockade against CIL, NTPC

BJP Lok Sabha MP from Godda (Jharkhand) Nishikant Dubey has written to Prime Minister Manmohan Singh, threatening to block coal mining operations of Coal India Ltd (CIL) and enforce economic blockade against the CIL and NTPC in Santhal Pargana region as these two are “not doing” enough for the betterment of the local people.

“I am informing your good office about the economic blockade from 15th February, 2011, onwards against Coal India Limited and NTPC for not doing any CSR (corporate social responsibility) activities in Naxal-affected most backward Santhal Pargana region of Jharkhand,” Dubey wrote to the PM on Thursday, alleging his repeated attempts to secure desired attention from both the PSUs for the local people had failed.

“We will stop coal mining operation of Coal India Limited in this region and supply of coal to NTPC’s Kehlgaon and Farakka Super Thermal Power Plant will be completely stopped. The supply of coal to NTPC plants based in Punjab will be stopped as well,” he added.

The BJP MP said the NTPC had incurred an expenditure of only about Rs 2 crore in his constituency since the inception of its plant about 29 years ago. “Coal India says that they are in loss but the fact is that the operation in Santhal Pargana region is very profitable for them and they simply cannot escape/elude/avoid their CSR responsibilities in this region,” the letter noted.

He alleged that the NTPC had failed to provide jobs to the people displaced during the setting up of the NTPC project in Santhal region.

Source: BJP MP threatens economic blockade against CIL, NTPC

Power plants insulated from protests

KORBA (CHHATTISGARH): An immense expanse of fine grey fly-ash stretches out to meet the distant horizon, its flat surface rippled by slow-spinning whirlwinds. Seen from the road, the National Thermal Power Corporation's (NTPC) ash pond rises up like an enormous ziggurat of expired embers, with a base nearly 1,120 acres wide and a summit rising 40 feet above Dhanras village near the coal town of Korba in Chhattisgarh.

The self-described “power hub of Chhattisgarh,” Korba district accounts for 11 per cent of the coal produced in India, and 10 per cent of NTPC's national production. Yet the district's emphasis on coal-based power plants has come at a price. A 2009 Central Pollution Control Board study described Korba as “critically polluted” and ranked it the fifth most polluted industrial cluster in the country.

An ash pond is a large patch bounded by raised embankments and used to store the powdery fly-ash produced when coal is burnt in thermal power plants.

“We can't even think of coming here once the summer winds start, the dust is everywhere,” says Jagdish Prasad Devangan, a member of the panchayat of Chhurikala, a village adjoining NTPC's ash pond. It has been 10 years since NTPC's 2,600 MW plant began storing its fly-ash near the village, and now the residents of Chhurikala seem to have had enough.

A High Court petition filed by Chhurikala resident Vinod Pandey accuses the district administration of colluding with private power companies to acquire village land in violation of established norms. The case contrasts two landmark legislations that have shaped the course of industrialisation in India — the Land Acquisition Act of 1894 and the Panchayat (Extension to Scheduled Areas) Act of 1996 (PESA).

Like many parts of Chhattisgarh, Chhurikala's lands are “scheduled” lands, demarcated as “tribal lands” by Schedule V of the Constitution and empowered by PESA, an Act that mandates that village-level gram sabhas be consulted before village land is acquired.

In June 2007, Vandana Vidhyut Limited signed a Memorandum of Understanding (MoU) with the Chhattisgarh government to set up a 540 MW plant in Chhurikala. A public hearing was conducted on December 31 that year. In his report, the sub-divisional officer wrote (in Hindi): “The villagers were informed about the acquisition of private land for industrial needs…the villagers present were not in agreement with giving their lands.”

In May 2008, the sub-divisional officer wrote out another order-sheet that downplayed the significance of the December meeting.

“On 31.12.2007, a Special Gram Sabha was organised in Chhurikala…owing to a lesser number of villagers being present, the proceedings were adjourned…after half an hour, the Special Gram Sabha was recommenced. In which agreement could not be reached in the Gram Sabha,” the order read.

‘Case of urgency'

Soon after, Korba's District Collector Ashok Kumar Agrawal invoked special powers of urgency under Section 17(1) of the Land Acquisition Act 1894 to acquire the land. Section 17 (1) allows a district collector to override all objections and acquire private land “in cases of urgency” within a period of 15 days.

Mr. Agrawal justified his decision on the grounds that “in view of electricity generation and employment in the State, it is very necessary to acquire this land…[the acquisition] is necessary in public interest, as in the absence of the land it would be impossible to build the power plant.”

In the same order, Mr. Agrawal wrote that the acquisition process was exempt from Section 5(a) of the Land Acquisition Act, a section that allows those affected by land acquisition 30 days to register their objections.

Section 4(2) of the Land Acquisition Act authorises a government officer to enter private land and “to ascertain whether the land is adapted for such purpose…to set out the boundaries of the land proposed to be taken.” In this instance, the administration nominated “Vandana Vidhyut Limited” as the survey officer, thereby authorising a private company to act on behalf of the government and evaluate if the land was fit for acquisition by the same company.

Since then, Mr. Agrawal has been transferred as the Collector of Raigarh, another district with large reserves of coal and numerous proposed power plants, and says he is unaware of the Chhurikala petition.

“If Section 17 was used, it must have been done with the permission of the State government,” Mr. Agrawal said in a phone conversation. When asked if he recollected why emergency provisions were invoked this case, he replied in the negative.

Chhattisgarh is a power surplus State, exporting electricity to Delhi, Gujarat and Karnataka. Chief Minister Raman Singh has publicly spoken of using the power sector to generate revenue surpluses which he hopes can be used in development schemes. Yet, the government's push to “urgently” hand over land to private companies has shaken farmers.

Last month, 25 farmers were injured in the Janjgir-Champa district when a protest against a proposed 3,600 MW power plant turned violent. Earlier, 100 farmers in Janjgir were arrested during a protest march when they allegedly attempted to storm the offices of KSK Energy Ventures Limited, the company setting up the plant.

Back in Chhurikala, the existing power plants are looking for more land to store their ever-increasing deposits of fly-ash. “Our ash pond will be full by August this year,” an NTPC official said. “After that we are on the road.”

The official said that NTPC had identified a spot for their next ash pond — Chhurikala.


Source: The Hindu : New Delhi News : Power plants insulated from protests

PMO favours joint mining by NTPC, RPower in Jharkhand

THE prime minister’s office has recommended that NTPC and Reliance Power should jointly mine adjacent coal blocks in Jharkhand to help them extract about 200 million tonnes of additional coal that would have been lost if the mines were delineated and drilled independently, government and company officials said. The proposal also has the backing of Parliament’s standing committee on coal. 

NTPC chairman and managing director Arup Roy Choudhury told ET that the company has found merit in the proposal. “It is a good proposal. But we have to examine it closely since we would start production much ahead of them. These evaluations would take some time,” he said. 

As per statutory norms, companies owning different blocks are required to maintain a “safety angle” between the blocks, reducing the amount of coal they can extract. 

A Reliance Power spokesperson confirmed the development and said: “This is the optimum way to mine coal for promoting coal conservation. We look forward to discussing with NTPC on how to co-ordinate mining operations.” 

Reliance Power had sought government’s approval for joint exploration of coal mines attached with Tilaiya ultra mega power project and NTPC’s Kerandari Aand Pakri Barwadih blocks. Tilaiya blocks – Kerandari B and Kerandari C – lie in between NTPC’s Kerandari A and Pakri Barwadih blocks. 

“The proposal has been recommended by PMO and the standing committee on coal. We have written to the power ministry seeking directions to NTPC for the same. The two companies should now be working toward a strategy to extract coal blocked in barriers and batters in their respective coalfields. They will have to get the strategy approved by the government,” a coal ministry official said.

Source: Article Window

Thursday, February 3, 2011

NTPC to invite bids for main plant in mid-2011

2,640-MW GIDDERBAHA THERMAL POWER PROJECT

Power utility NTPC Ltd plans to invite tenders for the main plant package for its 2,640-mw (4x660) coalbased thermal power project at Gidderbaha in Muktsar district of Punjab sometime in the middle of 2011 and award the contract by December. The project, which is being developed at an estimated cost of15,000 crore, is scheduled to be commissioned by 2016-17. The power plant will benefit Punjab and other states and union territories in the Northern Region.

NTPC had asked the CEA for year-wise power demand-andsupply projections for the Northern Region for the 12th Plan (2012-2017) to enable the utility to justify the power supply position for the project. Accordingly, CEA worked out the anticipated supply position for the 12th Plan, considering the under-construction schemes, and informed NTPC that power from the project would be fully absorbed in 2016-17, thus according inprinciple clearance to the viability of the project. The Punjab government has agreed to help with land acquisition and water allocation for the project against the allocation of 50 per cent of power to the state. The government has given inprinciple clearance for about 2,316 acres of land for the project. NTPC signed the PPA with Punjab State Power Corporation Ltd last month.

The power project, which would be funded entirely by NTPC, will be the state's biggest thermal power plant and is expected to boost economic development in the region. 

The combined capacity of the Gidderbaha TPP along with four other upcoming mega thermal plants at Talwandi Sabo, Goindwal, Rajpura and Mansa will be 10,590 mw and the total investment is nearly 53,000 crore.


Source:-http://www.projectsmonitor.com/POWDIST/ntpc-to-invite-bids-for-main-plant-in-mid2011

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