NTPC to expand existing plants as new projects face hurdles

23 Aug 2011 Evaluate

NTPC is preparing to expand capacity of its power plants as a back-up plan to avoid slippages in capacity addition targets as some of its proposed new projects face obstacles such as gas shortage and legal tussles over tenders. NTPC’s capacity addition would be crucial for India’s target of adding 100,000 megawatts in the 12th Five Year Plan because the state-run utility aims to add 25,000-30,000 mw of capacity in the five-year period, accounting for 30% of the country’s target. NTPC is planning to expand its existing power plants to leverage on the land available at sites in the event its plans to set up new projects fail. The company sees potential of expanding capacity at its existing units by 25,000-30,000 mw.

The back-up plan to add capacity through brownfield expansion has been initiated primarily due to concerns over projects totaling around 9,000 mw. NTPC had floated two tenders for bulk-buying of 20 supercritical units worth Rs. 40,000 crore. It first invited bids for 11 boilers and turbines of 660 mw each, and later for supply of nine boilers and turbine generator sets of 800 mw each. The company is also concerned about its planned gas-fuelled capacity of 3,000 mw, given that the fall in gas output from Reliance Industries’ Krishna-Godavari D-6 basin has aggravated the fuel crunch in the country. The KG-D6 block’s average gas production in the quarter ended June was as low as 48.60 million standard cubic meters per day while it should have been 70.39 mmscmd as per the government-approved field development plan.crackcrack

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