NTPC pegs FY14 capex at Rs 20,200cr: CMD

State-run National Thermal Power Corporation (NTPC) is likely to bid for UMPPs worth Rs 20,000 crore each in Odisha and Tamil Nadu, says CMD Arup Roy Choudhury.

In an interview to CNBC-TV18 Choudhury says the company's coal imports are progressing on track and its FY14 capex plans stand at Rs 20,200 crore.

Below is the verbatim transcript of Arup Choudhury’s interview on CNBC-TV18

Q: The standard bidding case-2 documents have been cleared and they have made it a mandatory condition for UMPP awardees to buy from domestic institutions From industry interactions are you also bidding for this and also from when is the case one document likely to be finalised?

A: I cannot answer the last part, it is up to the ministry to answer but yes we are very much involved in the discussion to finalise these documents. We are very much aware that last time when we participated, we had the best price, we had the workable price and we feel again we will have a very good price, some price at which the project can be done.

Last time too if it would have come to us we would have done the project. Project has not come up. We have 40 years of experience of running power projects. So whatever price we give will be the most realistic and possible price.

Q: What will be the impact of the recent norms on the offtake of power in general?

A: It is an area of concern which everyone is worried about because the offtake of power has got direct ramification on the economic development. Power is an important driver of the economy.

Although as far as NTPC is concerned, my business model has availability of my stations that are available at higher levels than last year. But offtake of power is a problem. It has got to do with the economic situation of the country and we have to think quickly. Many people are applying themselves on revival package and one of the revivals will be to try and consume more power.

Q: Last quarter we saw quite a bit of deterioration in your receivable situation. Are you expecting any improvement in the quarters to come?

A: No for us there has been no deterioration. I don't know why you said in Q1 there was deterioration. For the last 10 years, we've been receiving all the payments on time.

Once in a while some state governments have problems in availing the discounts we give. Not that they have a problem in paying up on time, they don't avail the discounts but we get our payments within the stipulated time.

Q: Now that we are approaching mid-year, can you update us on how the coal imports are progressing?

A: Coal import at 10 percent is roughly what we plan every year. This year our plan is 16 million tonnes out of which 7.2-7.3 million tonnes order has already been placed, the coal has already been received.

Another 5 million tonnes order is either to be concluded this month or early next month. Another 5 million tonnes we will import around end of December or January. So coal import is on track, there is no problem and we see no reason why we can't import what coal we need to.

Q: What is your capex target for FY14?

A: This year our capex is Rs 20,200 crore which we will get. There are a couple of issues but seven months are still left. We have informed the government and they have taken it up with the state governments.

There are a couple of issues that are hampering but it is not right for me to say now because we are working on it. I am very optimistic that we will finish off our capex.

Q: Are there any instructions from the government at this point in time on the power that the government is slotting?

A: No there is no such instruction. It is on a daily basis and there are 15 minutes slots and it is a complicated thing. Sometimes the states are not able to pick up the power that is available for a particular slot but that is a regular thing.

It doesn't affect me in my business, I make my plant available. If they don't take it, it doesn't bother me. Therefore, I don’t think that is something we should be much bothered about.