India: NTPC seeks partnership for new plant

NTPC Ltd, India’s largest energy conglomerate, plans to expand its business interests into the cement industry, with a view to manufacture cement using fly ash from its power stations and create captive demand for electricity.

The state-run company is inviting expression of interest (EOI) from cement makers, offering partnership in the building of the proposed cement plants in the vicinity of its power stations, according to the Times of India.

NTPC intends to build plants with a capacity of 1Mta or more, and is offering partnership on a ‘build, own, operate’ basis. Partners will have to sign a long-term contract for sourcing ash from NTPC and will be responsible for marketing the products.

"The notice seeking EOI is to gauge the interest of existing players in the cement market. The pattern of joint ventures will be decided on the basis of loacation and feasibility of each cement plant proposed by the interested manufacturers," one NTPC executive said.

This cement plant project will help NTPC meet the environment ministry's expectation of 100 per cent utilisation of fly ash. The company produces 65Mta of ash.