NTPC offers 40 per cent stake in Kayamkulam project to Qatar
26 Oct 2010
National Thermal Power Corporation Ltd (NTPC) has offered a 40-per cent stake in the expanded capital of its Kayamkulam power project to Qatar.
Qatar is expected to finalise its decision to participate in the project within a month, Arup Roy Choudhury, chairman of the state-run power utility, said.
At Kayamkulam, NTPC is planning capacity expansion to 650 MW in the 11th plan and to 1,300 MW in the 12th plan. If the cost of LNG is more than $3 per BTU (British thermal unit), the project will not be viable.
The Kayamkulam project has a present generation capacity of 350 MW. The stake sale to Qatar is aimed at ensuring gas supplies for the project post expansion.
NTPC has opened tenders for two million tonnes of liquefied natural gas (LNG) supplies for the Kayamkulam unit. It is also planning to call new bids for additional supply of LNG for its gas-fired units at Kawas and Gandhar.
NTPC, the country's largest power generation company, has planned 9,370 MW capacity expansion during the 10th plan and 11,558 MW in the 11th plan.
While majority of this capacity expansion will be based on coal-fired units, it is also looking at hydroelectric power projects as well as gas-based power projects
NTPC is also investing about Rs20,000 crore for setting up a 3,960 MW coal-based power project in Madhya Pradesh. The company has already signed a memorandum of understanding with the state government and MP Power Trading Company for this, the company said in a filing with the Bombay Stock Exchange.
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