Audit Reports
Commercial
Report No. 22 of 2010 – Performance Audit of NTPC Limited – Capacity Addition Programme – Project Management
Overview
NTPC is India's largest thermal power generating company. Its installed capacity as on 31 March 2007 was 27,404 MW. It identified 24 projects aggregating 22,430 MW that it decided to add to its capacity during 2007-12. Of these, two projects (760 MW) still await investment approval. Of the remaining 22 projects (21,670 MW), eight (6,130 MW) were unfinished projects of the capacity addition programme of2002-07 carried forward to 2007-12.
By August 2010, the Company had commissioned five projects (4,220 MW). It is likely to commission another six (5,000 MW) by March 2012. Thus, there would be a shortfall of 59 per cent vis-a-vis its own target.Against a total estimated project cost of RS 1,09,319 crore on 21 projects, the Company's expenditure up to March 2010 is RS 150,853 crore.
Performance Audit of the Company's Capacity Addition Programme has highlighted deficiencies in project management that led to the huge shortfall vis-a-vis its own targets. Audit observed that, with better planning, co-ordination and monitoring, the Company could have achieved capacity addition closer to the targets.