Power ministry says no to NTPC divestment

the power ministry has shot down a proposal from the ministry of disinvestment to privatise some of the power plants of the national thermal power corporation. while the disinvestment ministry wanted to sell some of the low-tariff power plants of ntpc to private investors, the power ministry was of the view that until structural reforms were taken to make state electricity boards commercially viable which at present are the sole customers of power from ntpc, any sell-off would not succeed. ntpc is not a case for disinvestment, but for investment, power minister suresh prabhu said. the power sector companies were not ripe for disinvestment due to sectoral problems like under-recovery of costs and absence of reforms, he said, adding, unless sebs are able to pay for the power they purchase from central psus, who would like to put in money where there are no returns. ntpc, as on november 30, 2001, had over rs 20,000 crore outstanding recoverable from various sebs, prabhu said. the disinvestment ministry had moved a note seeking divesture in some of the power plants with power generation cost of upto rs 1.50 per unit. prabhu said: we will use ntpc has vehicle for new capacity addition during the next two five-year plan periods to meet the power on demand target by 2012. the navaratna public sector enterprise would be adding 30,000 mw new generation capacities during tenth and eleventh five-year plans, he added. ntpc's total recoverable outstanding from state electricity boards was rs 20,877.01 crore, including a surcharge bill of rs 7645.21 crore as on november 30, 2001. the navaratna public sector enterprise would commence work on projects worth rs 50,000 crore by 2003 to meet the 30,000-mw target by 2012, prabhu said. while the navratna corporation, which contributes to over 25 per cent of electricity generated in the nation, has already started construction work of projects totalling a capacity of 5,300 mw while work on another six projects would start within two years. it will invite tenders for plant package and construction contract for projects totally 7,200 mw from next month.

Power ministry says no to NTPC divestment

THE POWER ministry has shot down a proposal from the ministry of disinvestment to privatise some of the power plants of the National Thermal Power Corporation.

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