Expect to end FY12 with 40,000 MW capacity: NTPC

State-owned power generating company NTPC?s execution roadmap is on track, says the recently appointed chairman and managing director Arup Roy Choudhury, in an exclusive interview

He says a wave of external factors affected their delivery in the past but is expecting to meet their annual targets this time around. At present, their execution capacity is at 32,000 megawatt. He says, they will end FY11 with an additional 4,000 megawatt and end FY12 with another 5,000 megawatt taking their total capacity to 40,000 megawatt. ?We are going to achieve 75,000 megawatt in the next five years,? he added.

Below is a verbatim transcript. Also watch the accompanying videos.

Q: Could you take us through the execution roadmap for NTPC over the next two-three years as you see it? Over the last three years, one observation has been that NTPC has not achieved plant capacity addition?

A: This year we had a target to achieve an additional 4,000 megawatt and we are on line to achieve that. From next year onwards it is going to be 5,500-6,000 megawatt increase in that order. Today our total capacity is generating about 30,000-32,000 megawatt and 18,000 megawatt is already under construction. So it is about 50,000.

We are targeted to do about 75,000 megawatt by the end of 12th plan for which you will be happy to know that another 8,000-9,000 megawatt is under the tendering process. Another 13,000 megawatt of the feasibility report (FR) has been approved which will take us to about 70,000 megawatt. We are in a position to get another FR approval of another 10,000-15,000 megawatt by end of this year. If we achieve all this, I don?t see any reason why NTPC should miss any of its targets.

Q: Those numbers look good. The only thing is that the recent track record does not inspire too much confidence because NTPC spoke about 2,800 megawatt in FY09, but achieved 1,000 megawatt. In FY10, it spoke about 3,300 megawatt, again achieved roughly 1,000 megawatt. Why this underachievement over the last couple of years which would make your investors slightly skeptical of this 4,000 megawatt target that you are talking about for this year?

A: To the investors, I would request them to wait for October 26 when our quarterly results are going to be announced. The 4,000 megawatt that we have targeted, most of the projects are online and some of the issues where there were probably certain failures, totally they are not attributed to NTPC because we are working in a total environment where there are many players who affect our delivery.

I can assure the investors we have discussed it in-house, had a detailed discussion with the directors, the regional executive directors and the general managers of the projects and we feel that we can now do a little differently than what we were doing before. We have put all our vendors and sub-vendors on a caution note.

Q: Just to reiterate those numbers, by the end of fiscal year 2011 and by the end of fiscal year 2012, what kind of executed capacity can you achieve?

A: Today we are at 32,000 megawatt, we will achieve another 4,000 megawatt this year and another 5,000 megawatt next year. By end of 11th plan we should be about 40,000 megawatt.

Q: By the end of fiscal year 2012, you will have achieved 9,000 megawatt more incremental capacity?

A: We would have achieved about 8,000-9,000 megawatt more. We will come to 40,000 megawatt total.

Q: From the current level of 33,000 megawatt?

A: As on date it is about 32,000 megawatt so we will come to 40,000 megawatt total and then we are going to 75,000 megawatt in the next five years.

Q: You have also price bid for Rs 25,000 crore of orders which opened up on October 8. By when will those contracts be awarded out for the large BTG equipment?

A: By January end.

Q: By the end of January for all of them?

A: Yes, for BTG by January end and the boilers also by this fiscal.

Q: Have you made, disclosed or arrived at L1 status for any of these large tenders already because there has been a lot of talk in the market, of specific players, who have got L1 status in many of the contracts they have bid for?

A: The tender was very uniquely cast, in the sense that everybody gets a part of the pie. We are evaluating all the tenders. We will get a good response from three parties for getting the larger chunk and the others will also get a share.

Q: Those three parties would include L&T? There was some confusion a few months back about L&T for one of the contracts which they subsequently rebid for?

A: No, L&T is not in the turbine package but definitely in the boiler package.

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