No risks from huge capacity addition target: NTPC CMD
Allaying apprehensions arising out of company’s huge capacity addition target, state-run NTPC CMD AK Jha said that India needs to increase power production to achieve over 8% economic growth, when asked about risks of financial burden due to huge capacity addition target of 23,000MW in a situation when private players are facing problems.
He added, “We don’t think we will face any such situation. Secondly, all our plants have power purchase agreements. Thus there is no risks related to cost recovery because our plants are backed by power purchase and fuel supply agreements.”
NTPC has plans to build generation capacity of 128GW by 2032 with a lot more focus on renewable energy. It plans to build a portfolio of 10GW of solar PV capacity in next five years.
NTPC has spent Rs 23,239 crore on its expansion plans in 2014-15 as against planned capital expenditure of Rs 22,400 crore. In this fiscal, NTPC is expecting to surpass its capital expenditure target of Rs 23,000 crore.