Power PSUs capex to rise 7% at `54,910 cr next fiscal
State-run power PSUs including NTPC, Power Grid and NHPC will spend a total of Rs 54,910 crore on capital expenditures in the 2015-16 fiscal, a surge of nearly 7 per cent over the current financial year, mainly to enhance capacity.
Other PSUs are Damodar Valley Corp (DVC), NEEPCO, SJVNL, and Tehri Hydro Development Corp (THDC).
All these state-run firms will spend a total of Rs 54,910 crore as compared to Rs 51,425.84 crore spent in the financial year 2014-15, the Union Budget 2015-16 document said.
During the next financial year, NTPC has earmarked a capex of Rs 23,000 crore to finance its ongoing and future projects along with meeting its capital requirements.
State-run Power Grid will spend Rs 20,000 crore followed by NHPC Rs 4,180 crore, DVC Rs 3,683 crore, THDC Rs 1,580 crore, NEEPCO Rs 1,292 crore and SJVNL Rs 1,175 crore.
Country’s largest power producer NTPC recently received government approval for setting up of 15,000 MW grid-connected solar power projects under the National Solar Mission.
The completion of this 15,000 MW capacity projects under the National Solar Mission would accelerate the process of achieving grid tariff parity for solar power and also help reduce consumption of kerosene and diesel, which is presently in use to meet the unmet demand.
Giving a thrust to the power sector, Finance Minister Arun Jaitley in the Union Budget 2015-16 announced increasing the renewable power capacity to 1,75,000 MW and setting up of five 4,000 MW each ultra mega power projects (UMPPs).
These envisaged UMPPs will entail investment of Rs 1 lakh crore.