NTPC to add 23,000 MW of additional capacity

New Delhi, Apr 9 (UNI) The National Thermal Power Corporation (NTPC), India's largest power generating company, is planning to add around 23,000 MW of additional capacity during its Xth (2002-07) and XIth plan (2007-12) periods.

NTPC also has substantial expansion plans, likely to be funded with a debt equity ratio of 70:30, compared to the present debt equity rate of 0.41 times, an ICRA report said.

With increasing energy deficit and limited capacity additions expected from State Electricity Boards (SEB) or Independent Power Projects (IPP), NTPC is not likely to face a demand risk.

Moreover, due to its strong presence and dominant position in the power sector and tariff competitiveness, the debt servicing ability would remain stable.

NTPC has also been invloved in undertaking significant capacity additions. During 2004-05, they commissioned two 500 MW units at Talcher in Orissa, a 500 MW unit at Ramagundam in Andhra Pradesh and a 500 MW unit at Rihand in Uttar Pradesh.

Last year it added another 500 MW unit at Rihand.

Significantly, all these plants have come well within schedule and the budgeted costs.

NTPC's turnover and operating profits is expected to show a significant growth in the long term, on the back of increasing capacity additions as well as diversification into related fields like power trading and acquisition of distribution circles.

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