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NTPC issue to fund expansion

By Our Corporate Reporter

CHENNAI, SEPT. 28. National Thermal Power Corporation has plans to double its capacity to 40,000 MW by 2012 by adding 9370 MW in the Tenth plan and 13,570 MW during the 11th plan period, according to T. Sankaralingam, Director (Projects). Addressing a press conference here today in connection with the public issue of the company he said the installed capacity as on March 31, 2004 was 21,435 MW through 13 coal-fired power stations and 7 gas-fired power stations. The installed capacity represented 19.1 per cent of India's total installed capacity and contributed 26.7 per cent of total power generated in the country, Mr. Sankaralingam said. The company was one of the cheapest producers of power and the average selling price was Rs. 1.47 per unit, he said.

The company was coming out with a public issue of equity shares on October 7 to part finance the expansion plans he said adding that company was planning to diversify its operations by entering into coal mining and coal washing operations as part of backward integration of activities. The plan was also to take up hydro and gas based projects with a view to balancing the escalating cost of fuel, he said. The company has already entered into power trading business.

The public issue is for 86.58 crore equity shares of Rs. 10 each consisting of a fresh issue of 43.29 crore shares by the company and a similar quantity by the Union Government under offer for sale.

After reserving 2.06 crores for employees, the net public offer is 84.52 crore shares. The issue, being made through a 100 per cent book building process, is open for subscription from October 7 to 14. The price band is fixed at Rs. 52 to Rs. 62.

Elaborating on the financial performance, B. K. Mandal, General Manager (Finance) said the company posted a net profit of Rs. 5,260.80 crores a rise of 45.8 per cent over the previous year. The gross revenue was Rs. 25,964.20 crores and he adjusted earnings per share stood at Rs. 5.10, he said. Over 99 per cent of its total sales of electricity were to the state electricity boards pursuant to long-term power purchase agreements. The company realised 100 per cent of the amount due from electricity boards for fiscal 2004 and their current payments were secured through letters of credit, Mr. Mandal said.

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