New Delhi | September 22, 2015: State-owned NTPC Ltd will start the nine coal mines allocated in a phased manner over the next two-three years.
“Of the nine mines, Pakri-Barwadih is in an advanced stage and we have a target to begin production from this mine this year,” said NTPC’s interim Chairman and Managing Director AK Jha.
“In the next two years, we will start another three mines and after that another three mines after the next 2-3 years,” he added.
NTPC was amongst the companies which had a few coal mines de-allocated after the Supreme Court’s ruling last September. However, in March, the company was reallocated five of its cancelled coal mines under the new regime as well as getting four more mines.
Jha said that the production timelines have been kept over the three years.
Further, the company will also start developing these mines as per its requirements.
The company has an installed capacity of 45,548 MW and has a further 23,000 MW under construction.
A total of 9,500 MW of capacity is under bidding and feasibility reports have been approved for a further 16,600 MW.
Jha was addressing the media ahead of the public issue of ₹700 crore tax-free bonds.
Asked whether the company’s capacity addition plans will impact its financials in an environment of weak demand, Jha said, “We don’t think we will face any problems. All our plants have power purchase agreements which cover the fixed costs. Thus, there is no risk related to cost recovery.”
In the 2014-15 fiscal, NTPC exceeded its capital expenditure target and spent ₹23,239 crore against the plan of ₹22,400 crore.
On Wednesday, the company will float ₹700 crore tax-free bond issue, the proceeds from which will be utilised to fund the company’s renewable energy projects.
While 40 per cent or ₹ 280 crore issue would be reserved for retail investors, rest would be for the non-retail category which would include QIB, corporates and high net worth individuals.
(Source: http://www.thehindubusinessline.com/)