OREANDA-NEWS. NTPC, in order to realize forward integration in energy value chain, formed a wholly owned subsidiary company, i.e. NTPC Electric Supply Company Limited (NESCL) to take up power distribution activities. This was stated by Sh. Piyush Goyal, Minister of state for Power, Coal & New and Renewable Energy (IC) in a written reply to a question in the Lok Sabha today. NESCL has taken up distribution activities by forming a Joint Venture company with Kerala Industrial Infrastructure Development Corporation.

The Minister further stated that for forward integration, NTPC has forayed into power trading and distribution business through its 100% owned subsidiaries NTPC Vidyut Vyapar Nigam (NVVN) and NTPC Electric Supply Company Ltd. (NESCL), respectively. In the financial year 2013-14, NVVN traded 9.322 billion units of electricity.

The Minister further stated that For backward integration, NTPC has forayed into coal mining. Ministry of Coal, Government of India had allotted six coal blocks. Out of six coal blocks, Hon'ble Supreme Court, vide its Order dated 24.09.2014, has cancelled the allocation of 5 coal blocks of NTPC namely Chatti-Bariatu, Chatti-Bariatu (South), Kerandari, Dulanga and Talaipalli coal blocks of NTPC. Presently, NTPC is left with only one coal block, i.e. Pakri-Barwadih. NTPC Limited has a strong balance sheet to support Capex plans of the company and has achieved the capex of Rs.21,797 crore for financial year 2013-14, the Minister added.