State run power producer NTPC Ltd. is exploring opportunities in Africa to get coal blocks under bilateral pacts between India and mineral rich countries.

Mr Arup Roy Choudhury chairman of NTPC said that NTPC's capital expenditure in the financial year through March will be about INR 170 billion (USD 3.38 billion), marking a sharp cut in spending plans, as last April the company said capital expenditure this year would be as much as INR 264 billion. For next year, NTPC plans capital expenditure of INR 209 billion.

He said that "I am told that there are some [bilateral] opportunities available in Africa. I don't mind this route [to get coal blocks]."

NTPC's plans to get coal blocks in Africa under bilateral pacts imitate a similar strategy by state run Coal India Ltd which is looking at such options in South Africa and Indonesia.

NTPC is looking to invest in coal mines overseas and importing the fuel to partly feed its power stations in India as it plans to increase generation capacity to 66 gigawatts by March 31st 2017, from 36.01 gigawatts currently.

Mr Choudhury didn't said if NTPC is now in talks with any African nation for coal blocks, but said the company would work towards building power plants and investing in other infrastructure in countries that offer coal blocks.

He said NTPC's coal needs are likely to rise to 300 million tonnes in 2017 from 160 million tonnes in the financial year through March, in line with plans to more than double its generation capacity.

(Sourced from online.wsj.com)