New Delhi: Central utility NTPC’s plan to enter nuclear power generation business might take off soon, with the government planning to allocate a site for the development of 2X700 mw capacity to the proposed NTPC-NPCIL joint venture (JV).

The department of atomic energy (DAE) is in the process of finalising site for the JV. “One of the sites identified by the DAE for 2x700 mw plant will go to the NPCIL-NTPC JV,” DAE secretary Srikumar Banerjee said on the sidelines of the India Energy Congress here on Tuesday. In a twin strategy to reduce its expanding carbon footprint and bolster fuel security for its power plants, India’s largest thermal power generator NTPC has drawn up plans to reduce its dependence on coal.

As part of the strategy, it has planned forays into non-conventional power generation like renewable and nuclear. NTPC signed a memorandum of understanding (MoU) with Nuclear Power Corporation of India in February last year to jointly develop nuclear power generation capacity. However, a required JV is yet to be floated. The NPCIL has plans to build indigenously developed Pressurised Heavy Water Reactors (PHWRS) of 700 mw at four locations across the country. While two plants each are expected to come up at Rawat Bhata in Rajasthan and Kakrapar in Gujarat, plans are afoot to finalize sites in Haryana and Madhya Pradesh for atomic power plants.

Meanwhile, NTPC, which has targeted to have 75 gw capacity by March 2017, has been facing delays in implementing power projects. It could add only 1,000 mw in the past fiscal. But the company is planning to expedite implementation work on its 11th capacity addition programme. The company expects to add 4,000 mw-5,000 mw capacity in the current financial year 2010-11 that would entail capital expenditure of Rs 29,000 crore. While the company is financing 30% equity component from its internal accruals, it has loans tied up for funding the 70% debt portion.

“We have tied up almost 70% of our debt needed for this year, primarily with domestic banks and financial institutions,” NTPC chairman RS Sharma said. India is required to accelerate the pace of power generation capacity if it has to maintain its economic growth rate over a long term.