NTPC which is trying hard to meet its Capex target for 2013-14 is facing many hurdles in its path in the form of land related issues, natural calamities and lackadaisical approach by some of the contractors. It may be recalled here that NTPC had spent Rs.10,289 crore of the capital outlay upto third quarter of this fiscal as against the revised total capex target of Rs.10,481 crore, thus achieving 98.16% of the Capex utilization targets. NTPC had planned to spend Rs.8,301 crore during the remaining period to meet the Capex target for 2013-14. Though final figures are not yet available, it seems that the power major despite its best efforts may fall short of Rs.2,000 crroe from its targeted Capex amount for the year.
NTPC is facing problems due to issues related to settlement of compensation for encroachers on Government land and law and order issues related to coal mining which are yet to be settled by the Government of Jharkhand. As a result of this NTPC fears a Capex shortfall of Rs.850 crore. In case of Tanda – II thermal power project in Uttar Pradesh, the state government has failed to hand over physical possession of land which might result in a Rs.500 crore shortfall. Further, delayed supplies by the suppliers in case of Solapur, Meja and Barh projects might affect the capex target by Rs.450 crore. The flash floods in Uttarakhand that caused severe damage at the project site of Tapovan Vishnugarh and Lata Tapovan hydro projects by washing away of the approach road may also result in Capex shortfall of Rs.200 crore.