State-run generation utility NTPC will spend Rs 500 billion to replace outdated plants, which are more than 25 years old, aggregating 11,000 MW capacity with more efficient and less-polluting modern units to reduce carbon emission.
The move would catapult India as a hotspot for global power generation equipment makers and breathe life into domestic manufacturers such as state-run Bhel and private sector L&T, besides a host of joint ventures, saddled with shrinking order books due to a worldwide shift away from coal-fired projects.
According to TOI, Piyush Goyal, Power and Coal Minister said that it is expected that the replacement would take five years. Efforts would be to kick-start the project by floating tenders for new equipment after getting investment approvals in the next 3-4 months, if the environment ministry accords automatic clearance.
He added that all these plants already have environmental clearance and NTPC should not be asked to seek green nod from the scratch. It is a case of old units being replaced with more efficient machinery with far lower emission.
According to the minister, replacing old plants would not only be benefit the environment but would also help bring down cost of power as NTPC would have to use less coal.
Goyal also said the replacement scheme is not limited to NTPC and can be availed by other power producers, including utilities run owned by state governments. He said replacing old plants was a better option than retrofitting them with pollution control equipment.
According to the minister, the time was ripe for embarking on such a project as interest rates were expected to go down further as a result of improved liquidity in banks due to demonetisation. He also said it has been decided not to levy any charge for using digital means for making power utility payments except, in the case of credit cards.
