NTPC set for overseas ventures: CMD

Tiruchirapalli, Feb 2: National Thermal Power Corporation (NTPC) Ltd, the power generation major, is all set for an overseas foray by expanding its activities into various foreign countries.

Talking to newspersons here, NTPC Chairman and Managing Director T Sankaralingam said the company would be entering into some specific activities in Nigeria, Indonesia, South Africa and Australia after its foray in Sri Lanka.

The company had recently signed an agreement with the Sri Lankan Government for the establishment of a 2X250 MW coal-based thermal power plant at Trincomalee-- upon a 50-50 investment stake holding with the Sri Lankan Electricity Authority.

The Nigerian Government has also entered into an MoU with NTPC on varied power generation activities. As short term plans, the public sector giant would assist that government in refurbishing LNG-based sick power plants to extend life span and to enhance production capacity.

As a long term plan, NTPC would install a coal-based power plant of 500 MW. It could be a joint venture with the Nigerian Government or any private corporate or even a partner on a global venture.

The Nigerian Government had expressed its wish to tie up with NTPC and the PSU was awaiting clearance from the Centre, he added.

Similarly, NTPC is holding discussions with the Indonesian Government for power projects. There would also be power generation ventures into Australia and South Africa-- the details of which would be made known in a few weeks.

The NTPC Board, in principle, had cleared the company to venture into nuclear power generation. As such, by the middle of 11th Five Year Plan period, the company would embark on generating 2000 MW by nuclear technology and the details are being worked out, he said.

On the expansion of the company, Mr Sankaralingam said it was not linear or lateral expansion, but widening of its base.

Mr Sankaralingam said NTPC had been allocated for raising 4,500 MW hydel projects in the north-east in two locations-- one of 4,000 MW and another 500 MW. In all, NTPC, over the next five years or so, would be in a solo venture of 8,000 MW hydro power generation. NTPC is expanding its vistas in power transmission also. A separate company identity is being mooted and decided to participate in all the tender biddings for power transmission activities as and when invited by the power ministry, he added.

To a query, the CMD said the financial issue was not a major aspect. As of now, construction activities to the tune of 9,000 MW was already underway. The company was gearing up its construction activities and major share of the 900 MW mark was to be commissioned shortly.

The financial management was feasible with its own in-house resources and through availing loans from both domestic and foreign resources. It is about 70 per cent component as borrowed investment, out of which 30 per cent would be external and 40 per cent from the domestic sources.

Life Insurance Corporation of India Ltd had a tie-up with NTPC for releasing Rs 15,000 crore. The Asian Development Bank (ADB) had issued a loan of 300 million US dollars and that too without any guarantee from the Centre. For the issuance of yet another loan, ADB was in the process of appraisal and other pre-requisite formalities.

To a question, he said, ''NTPC is in the process of strengthening its human resources. It is a delicate, but at the same time a vital issue. The PSU is in the process of recruiting about 4,500 engineers.'' In fact, NTPC required 12,500 engineers in view of expansion activities and recently it had inducted 534 management trainees and engineer trainees. The recruitment process was conducted through holding campus interviews in institutions like IITs, NITs, he added.

UNI