NTPC: 25,000 MW by 2012 possible if Coal India assures fuel supply

State-run NTPC today said it can meet the thermal power generation target of 25,000 MW by 2017 if it gets the fuel supply assurance from Coal India (CIL) in the next six months.

“As of now, the coal linkage that we have would allow us to add 14,500 MW, we would love to do 25,000,” NTPC chief NTPC Arup Roy Choudhury told reporters here.

If NTPC gets the assurance on coal supply from CIL in the next 6 months, it is possible to add 10,000 or 11,000 MW, he said.

Choudhury said if CIL is increasing its production by 8-9 per cent, one-third of the extra fuel produced should be given to NTPC as it generates one-third of the total electricity produced in the country.

On the contentious Fuel Supply Agreement (FSA), he said, “FSAs will remain the same, except that in the new ones there will be a change in the trigger level which has been indicated by the PMO and that is all we have been saying.”

When asked about the penalty clause of the FSA, Choudhury said, “Why should I be bothered about what is the penalty for Coal India, when I am able to get all my coal and when I am giving them incentive for giving me more coal, I would like to maintain that relationship…I have never said anything about the penalty clause.”

As per the proposed FSA by the Coal India, there would be nil penalty in the first three years of the pact, if the coal major fails to meet the minimum supply level. CIL will invite penalty if it fails after three years of signing FSA.

Meanwhile, NTPC which has been re-allocated its forfeited coal blocks by the government would receive a formal letter for the same by the Ministry of Coal in a day or two.

“Formal letter for re-allocation of the de-allocated coal blocks is on its way, it would come to us in a day or two,” he added.

Coal Ministry had de-allocated three coal blocks- Chhati Bariatu (South), Chatti Bariatu and Kerandari – of NTPC due to failure in the development of those blocks. All these blocks are situated in Jharkhand.
Source: ET


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