State-run power utility NTPC Limited has set a target of adding 5 gigawatt (GW) power generation capacity in the current fiscal year and is also aiming to increase coal production by 46.5 percent during the same period, said Chairman and Managing Director (CMD) Gurdeep Singh.
"Meeting energy requirement of the country is of utmost priority. Accordingly, we have set ambitious targets for capacity addition in the fiscal year 2023-24. Our goal is to add approximately 5 GW of new capacities during this period," Singh said addressing the shareholders in an annual report for the year 2022-23.
In the first quarter (Q1, FY24) itself, the central public sector undertaking (CPSU) commissioned 770 megawatt (MW). Commissioning activities are progressing well on other projects which are in advanced stages of completion, the CMD stated.
In FY23 (2022-23), NTPC added 3.2 GW (3,292 MW) capacity, of which 1.3 GW (1,352 MW) were of renewable energy and 660 MW in Bangladesh, which is NTPC’s first ever overseas capacity. NTPC group’s total installed capacity as on date is 73 GW (73,024 MW).
“What’s even more important is that, for the first time, our organic non-fossil capacity addition has surpassed fossil capacity addition, showcasing our commendable progress in the energy transition journey. NTPC achieved this feat despite a lot of uncertainties and disruptions in the global supply chain,” Singh said.
As for coal production, NTPC recorded a 65 percent increase in coal production from its captive mines, which reached 23.2 million metric tons (MMT) during FY 2022-23. In the first quarter of FY 2023-24, the power generating giant registered a growth of over 100 percent in coal production as compared to Q1 FY 2022-23.
"This significant progress underscores our commitment to ensuring fuel security for our power stations. Looking ahead, we have set an ambitious production target of 34 MMT for FY 2023-24, reinforcing our dedication to meeting the growing energy demands while prioritizing the stability and sustainability of our operations,” Singh said.
NTPC plans to develop around 7 GW of additional coal-based capacity as brownfield projects by 2030.
Plan to get strategic investor for green arm of NTPC repealed
The maharatna PSU also stated, for the first time, that it has decided not to go ahead with its plan a stake sale in NTPC Green Energy Limited (NGEL) through a strategic investor.
“I would like to place on record that we have annulled the process of identifying a strategic investor for NTPC Green Energy Limited due to certain issues and are now working on other strategies including an Initial Public Offer (IPO) which will unlock more value,” Singh said.
This comes after Malaysia's Petroliam Nasional Berhad (Petronas) withdrew its offer for a 20 percent stake in NGEL.
On March 17, the Cabinet Committee on Economic Affairs (CCEA), chaired by Prime Minister Narendra Modi, granted exemption to NTPC Ltd, India's largest power generating company and a Maharatna PSU, for making an investment in its green energy subsidiary. The CCEA also exempted NGEL’s investment in NTPC Renewable Energy Limited (NREL) and its other subsidiaries subject to a ceiling of 15 percent of its net worth beyond the monetary ceiling of Rs 5,000 crore to Rs. 7,500 crore.
The country is aiming to reach 500 GW of non-fossil energy capacity by 2030. NTPC, through this investment in the RE sector, aims to add 60 GW of RE capacity by 2032 which will help the country in achieving its 500 GW target and move towards the larger aim of having ‘Net Zero’ emissions by 2070. The enhanced target is in line with the government’s 'Panchamrit' announced at COP 26 Summit and in the Budget 2023 as India’s contribution to climate action towards ‘Net Zero’.
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