NTPC Limited (NTPC) to expand its power generating capacity by approximately 19,000 megawatt (MW) over the next three years, planned to invest INR550 billion ($11.6 billion). The fund requirement of INR550 billion would be shared through debt from financial institutions and equity at 70% and 30% respectively. From the existing power generation capacity of 30,144 MW, the company intends to reach its total capacity to 50,000 MW by 2012.

R.S.Sharma, the chairman and managing director of NTPC disclosed that the total capital expenditure would reach INR550 billion which is likely to generate INR800 billion revenues by end of financial year 2012.

”During the eleventh five year plan period (2007-2012) our aim is to add 22,000 MW to our installed capacity. In the first two years, we had commissioned around 2900 MW and work is in progress for another 18,000 MW. In 2009-10 our capital investment will be Rs17,700 crore,” Sharma added.

The plan would include INR100 billion investments to increase the capacity of the Simhadri power plant in Andhra Pradesh from 1000 MW to 2,000 MW and setting up a new plant with a power generating capacity of 1,000 MW in Vallur, Tamil Nadu.

The Simhadri plant presently serves consumers in the state of Andhra Pradesh, and with the implementation of the plan would serve the states near by. The company’s joint venture with Tamil Nadu State Electricity Board, for The Vallur plant, would serve the customers in the southern states.

The planed portfolio also includes 10,000 MW through gas, coal based capacity of around 53,000 MW, around 2,000 MW from nuclear sources, 9,000 MW through hydro generation and approximately 1,000 MW from renewable energy sources.

The company reached a 20-year fuel supply agreement with Coal India Ltd. (CIL) for the uninterrupted supply of fuel for power generation. The company during 2009 would get 114.7 million tonnes of coal when compared to its annual requirements of around 155 million tonnes. NTPC would also sign an agreement with CIL for jointly setting up a 4,000 MW power plant at a cost of Rs25,000 crore in Jharkhand.

The company also intends to sign an agreement with the Nuclear Power Corporation of India Ltd. (NPCIL) to start a joint venture company for foraying into the field of nuclear power generation. The power plant in Karnataka based on wind energy with a capacity of around 500 MW is expected to be finished by 2010.

The company’s plans for the twelfth plan period from 2012-17 is to reach 75,000 MW of power generation capacity, through diversified sources.