Partnering private companies can make NTPC more efficient: Experts

NEW DELHI: An advisory panel has recommended public-private participation, acquisitions and more research as measures to make the country's largest power producer NTPC efficient. The panel, headed by former power minister Suresh Prabhu, has said NTPC should explore electricity distribution through JVs to improve the power sector's financial health. The suggestions were made at the panel's first meeting, which was held recently .

Shortage of fuel is one of the biggest challenges before the public sector power producer, the panel for integrated development of power, coal and renewable energy said, adding that NTPC could resolve this problem by developing rail connectivity to coal blocks through JVs. According to the panel, NTPC, which operates 43,000 MW of generation capacity, has been allotted coal blocks with annual cumulative capacity of over 90 million tonne since 2004, but the power producer has failed to commence production due to external and internal factors.

“The members on the advisory panel suggested that NTPC phase out old and inefficient plants that are consuming excessive fuels. They opined that revival of electricity distribution is critical for the power sector and that NTPC should consider forming JVs with state-run distribution firms to offer its management and technical skills,“ said a power ministry official, requesting anonymity.

He added that NTPC's management had expressed concern over new tariff norms which are taking a toll on the company's profitability.