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Sunday, 17 January 10
NTPC TO DOUBLE CAPACITY BY 2017


NTPC, which will launch its follow-on public offer on February 3, plans to more than double its generating capacity to over 70,000 mega watts by 2017 from 30,644mw now.

“We plan to add 6,000mw of generation capacity annually during 2013-17,” said a senior company official.

Officials said the company would add 8000mw by the end of the Eleventh Five Year Plan (2007-12), while 18 projects of 17,930mw are under construction at 16 locations.

Analysts said there was certainly a ready market for such capacity, but the issues for NTPC would be timely execution and a sufficient supply of fuel such as coal and natural gas.

Officials said the state-owned PSU was looking at importing coal directly from the next financial year instead of routing it through agencies such as MMTC India Limited.

It is also considering stake buys in coal mines abroad, including Australia, Indonesia and South Africa.

A company statement said, “The follow-on public offer would close on February 5.”

The minimum bid lot and the floor price will be decided a day before the opening of the offer.

The government is divesting a 5 per cent stake in NTPC through the follow-on offer, which is expected to fetch about Rs 11,000 crore.

The government’s share in NTPC would come down to 84.5 per cent after the selloff.

The shares of NTPC closed at Rs 232.50 on the BSE on Friday, gaining around 0.63 per cent.

NTPC plans to enter the capital market with an issue size of 41.22 crore equity shares of Rs 10 each at a price to be determined through the book-building process.

A total of 42.73 lakh shares have been reserved for NTPC employees.

The Cabinet Committee on Economic Affairs had approved the stake sale proposal in October last year.
Source: Telegraph India



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