NEW DELHI -- The Narendra Modi administration hopes to transform state-owned power generator NTPC Ltd into the world’s most valuable power company by 2019, India’s minister for coal, power and renewable energy Piyush Goyal said on Monday.
NTPC, formerly known as National Thermal Power Corporation, is expected to bag a substantial number of the country’s 204 coalfields, which the government plans to auction in the next few months, for captive use.
These coalfields, which had been allocated between 1993 and 2010 to downstream power, steel and cement producers, were ordered to be taken back by India’s Supreme Court in September, after it declared these allocations illegal. Following the court's ruling, the Modi government announced that it would take back and auction away these mines for captive use.
In the first round, in December, the government is expected to auction off 74 of these mines. On Monday, The Economic Times, citing an unnamed government official, reported that state-run companies, including NTPC, were expected to get back the coal fields that were taken away from them.
Goyal's vision also includes converting NTPC into an “end-to-end” company -- one that mines coal, generates power and distributes power.
NTPC, which was ranked No. 424 on Forbes’ Global 2000 list of the world’s most valuable companies, currently has a power-generating capacity of 43,128 MW, and the company plans to increase this to 128,000 MW by 2032.
COUNTING ON SOLAR
India is also looking at increasing its target for solar power generation by as much as 400 percent to 100,000 MW by 2022, Goyal said on Monday. At present, the installed capacity for solar power generation stands at just over 2,200 MW.
Goyal also said that the government is looking to “move away” from awarding subsidies to the renewable energy sector, which could potentially cost as much as three trillion rupees, or nearly $50 billion. The Modi government could likely announce a decision on subsidies when it presents the federal budget in parliament in February.