Millennium Post

NTPC raises profit as world economy slides

Nation's largest power producer NTPC on Tuesday posted a rise in net profit at Rs. 2,527.02 crore in the first quarter ended 30 June, 2013, according to a news agency.

The state-run major had a net profit of Rs. 2,498.67 crore in the year-ago period.NTPC's total income operations declined to Rs. 15,661.85 crore in the latest June quarter from Rs. 16,165.95 crore in the same period a year ago, the news agency reported.

However, lower expenses helped the company to report a marginally higher quarterly net profit.The variation related to coal prices on gross calorific value (GCV) basis, worth about Rs. 3,523.18 crore at the end of June this year has been considered as 'contingent liability'.
In the June quarter, total expenses of the company fell to Rs. 12,289.94 crore as compared to Rs. 13,092.66 crore in the year-ago period, according to news agency.

From December 2011, the grading and pricing of non-coking coal was changed to GCV basis from earlier Useful Heat Value (UHV) system.
The board had approved payments to coal companies on GCV basis besides directing the company to frame modalities for implementation of GCV-based grading system.

Subsequently, modalities with regard to joint sampling and testing of coal at mine end or station end future payments to coal companies were worked out. NTPC said the modalities were communicated to the coal companies in October/November 2012 and thereafter released payments on the basis of GCV system.

However, the company began to notice variations in GCV of coal supplied and received at power stations.'The company regularly informed coal companies about this variation which has not been accepted them. The issue has been taken up with the coal companies directly and through the Ministry of Power and Ministry of Coal for resolution,' the filing said.
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