Calcutta, Nov. 16: The National Thermal Power Corporation (NTPC) hopes to start the construction of its 500-mw thermal power unit at Farakka in the next financial year.

“The detailed project report will be ready soon and we are hoping to start the work by 2006-07,” NTPC chairman C.P. Jain said on the sidelines of PowerMart 2005. The project will be ready by 2011.

NTPC has already worked out the financing model for the project and has decided to invest Rs 600 crore in equity. The remaining Rs 1,400 crore will be borrowed to finance the Rs 2,000-crore project.

The public sector unit has already approached different ministries for clearances. The new plant will be an extension of the existing 1600-mw unit at Farakka. Bengal will consume 34 per cent of the total power generated at the new unit. Under Farakka stage I, there are three units of 200 mw each. Farakka stage II has two 500-mw units. Water and coal linkages have been the deciding factors for the unit.

NTPC has received an in-principle approval from the Central Water Commission. The company has applied for a captive coal mine block at Brahmani. The Union coal ministry is studying the proposal. The annual capacity of the Brahmani coal block is around 5 million tonnes per annum.

“The Union power ministry has written to its coal counterpart for immediate allocation of the Brahmani coal block to NTPC,” Jain added.

Farakka stage III is part of NTPC’s expansion programme in the Eleventh Plan Period.

NTPC will add 17,333 mw in the Eleventh Plan Period. At present, NTPC produces 23,749 mw, of which thermal power generation contributes 19,480 mw. In 2005-06, NTPC has earmarked Rs 8,500 crore as capital expenditure.

Coal needs

NTPC will require 225 million tonnes of coal in the next five years. At present NTPC needs 108 million tonnes of coal.