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Wednesday, 09 September 09
NTPC HIRES MACQUARIE TO ADVISE INDONESIA COAL MINE PURCHASE


Bloomberg reported that, NTPC Ltd., Asia’s biggest power utility by value, has hired Macquarie Group Ltd. to evaluate a proposed coal mine purchase in Indonesia, the Indian company’s first overseas acquisition.

“We appointed Macquarie about 15 days back and they have already started due diligence,” Chairman R.S. Sharma said in an interview at his office in New Delhi. He didn’t give details.

Indian utilities are seeking thermal coal assets overseas to plug a local shortfall as the country almost doubles generation capacity in the five years to March 2012. State-owned monopoly producer Coal India Ltd. said last month it will invest $1.5 billion to acquire mines abroad to help overcome a shortage of an estimated 228 million metric tons a year by March 2012.

NTPC plans to import 12.5 million tons of coal in the year ending March, Sharma said. The utility plans to start coal production at its local mines this year and produce 15 million tons of coal a year by 2012.

The power generator will start a new coal-fired unit at its Dadri plant in north India by October end, Sharma said in the interview yesterday. The unit will supply power to New Delhi before next year’s Commonwealth Games and will operate at full capacity of 490 megawatts two months after starting up. Another similar-sized unit at Dadri will start by February, he said.

“Our expansion plans are on track,” Sharma said. “We expect the next unit at our Korba plant to start this fiscal year. All three units will start producing at full capacity by March.”

Installed Capacity

The three new units will have a combined output of 1,480 megawatts. NTPC plans to increase capacity by 10 percent in the year ending March, adding plants that would generate 3,300 megawatts of power.

India plans to add 78,700 megawatts of generation capacity in the five years to March 2012 and 100,000 megawatts in the following five years. The world’s second fastest-growing major economy faces peak-hour shortages of 12.6 percent this year, according to the Central Electricity Authority.

NTPC will invite bids next month for equipment for five projects that will generate a combined 7,260 megawatts of power, Sharma said.

The company’s installed capacity, including that of ventures, stood at 30,644 megawatts, according to its Web site. India’s total installed capacity was 151,073 megawatts as of July 31, according to the Central Electricity Authority. One megawatt is the energy used by 200 urban homes in India
Source: Bloomberg



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