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NTPC
We met the senior management team and also visited Dadri – which has NTPC’s
2X490MW new coal plant, 4X210MW old coal plant and the 817MW combined
cycle gas based plant and Powergrid’s HVDC transmission line.
Investor concern centered around execution slippages so far, and NTPC dissected
the same, attributing the slippage to gas unavailability, equipment supply delays by
Russian supplier Power Machines and subsequent land dispute at 2GW North
Karanpura. The company is hoping to commission 5GW in FY12 (on the current
base of 35GW), another 4.1GW in FY13 and take the capacity up to 66GW by FY17.
Of new capacities of 21GW over next 5.5 years, 6GW has been ordered and another
15GW is in the process of being ordered.
A key investor concern was on coal availability, and the immediate impact on
NTPC’s incentive-led RoE due to lower plant availability. The management stated
that it was advocating (to the regulator) a policy change in this regard, so that the
utility is not penalized for feedstock shortage. Besides that, the company highlighted
its efforts to begin production at its captive coal blocks, and targets 70-75mt of
captive production by 2025. On the overall coal equation, the company requires
165mt of coal, of which it gets 136mt via FSAs (125mt current), 23mt via imports
(14mt current) and the balance via e-auction. However, by 2017, it would require
270mt, of which 125mt via current FSAs, 50mt via captive, 50-60 via new domestic
coal supplies and 46 via imports.
At the Dadri plant, we got a closer perspective of the execution capability of the
company, but to us, it was very evident that the location can support more plants. The
management confirmed they have gas-based capacity of 1000MW in the prefeasibility
stage, as these require very less land per MW. Gas constraints seemed to
be constraining growth, but availability of gas could promote faster than expected
capacity growth.
India Equity Research Reports, IPO and Stock News
Visit http://indiaer.blogspot.com/ for complete details �� ��
NTPC
We met the senior management team and also visited Dadri – which has NTPC’s
2X490MW new coal plant, 4X210MW old coal plant and the 817MW combined
cycle gas based plant and Powergrid’s HVDC transmission line.
Investor concern centered around execution slippages so far, and NTPC dissected
the same, attributing the slippage to gas unavailability, equipment supply delays by
Russian supplier Power Machines and subsequent land dispute at 2GW North
Karanpura. The company is hoping to commission 5GW in FY12 (on the current
base of 35GW), another 4.1GW in FY13 and take the capacity up to 66GW by FY17.
Of new capacities of 21GW over next 5.5 years, 6GW has been ordered and another
15GW is in the process of being ordered.
A key investor concern was on coal availability, and the immediate impact on
NTPC’s incentive-led RoE due to lower plant availability. The management stated
that it was advocating (to the regulator) a policy change in this regard, so that the
utility is not penalized for feedstock shortage. Besides that, the company highlighted
its efforts to begin production at its captive coal blocks, and targets 70-75mt of
captive production by 2025. On the overall coal equation, the company requires
165mt of coal, of which it gets 136mt via FSAs (125mt current), 23mt via imports
(14mt current) and the balance via e-auction. However, by 2017, it would require
270mt, of which 125mt via current FSAs, 50mt via captive, 50-60 via new domestic
coal supplies and 46 via imports.
At the Dadri plant, we got a closer perspective of the execution capability of the
company, but to us, it was very evident that the location can support more plants. The
management confirmed they have gas-based capacity of 1000MW in the prefeasibility
stage, as these require very less land per MW. Gas constraints seemed to
be constraining growth, but availability of gas could promote faster than expected
capacity growth.
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