Does Ntpc Have Been Successful in International Strategy?

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Assignment

Question 1:  Does NTPC have been successful in International strategy?

Answer: NTPC has ventured into the international market mainly for sourcing the coal for its plants in India. It has sourced coal from many foreign countries for fulfilling the energy needs of the nation.  Now NTPC is trying to go into new ventures so that they can bring up new capabilities in the neighboring countries and import more power from these nations. NTPC is now trying to go into joint ventures with the firms in the nations and trying to improve the energy situation in the area and then further import energy from these plants.

NTPC is already in joint ventures with firms from Sri Lanka and Bangladesh as part of their international strategy.  In Sri Lanka they have a joint venture with Ceylon Electricity Board (CEB) and in Bangladesh they have a joint venture with Bangladesh Power Development Board, both for building power plants in the countries.

In Sri Lanka they are planning to set up two 250 MW power plants in the Trincomalee region as part of the joint venture with Ceylon Electricity Board, with 50% stake from NTPC and the rest owned by CEB, And in Bangladesh, NTPC entered into a joint venture with Bangladesh Power Development Board (BPDB) to construct and operate coal based power plants in Bangladesh, with 50% stake from BPDB and the rest owned by NTPC. So NTPC is trying to help the neighboring countries in developing their capabilities and then try to import the excess energy from these plants to make sure that the country is energy sufficient.

Along with the joint ventures that NTPC has undertaken with the firms in the neighboring countries they have under taken a joint venture with NMDC, RINL, CIL and SAIL for the procurement of metallurgical coking coal and thermal coal from overseas and acquisition of coal assets abroad. With this JV they aim to improve the energy self-sufficiency of the country by importing better quality coal from overseas and fulfilling the energy needs of the plants in the country. The venture aptly named ‘International Coal Ventures Limited (ICVL) aims at finding the best source of coal for the utilization the coal powered plants across India, to decrease the impact on environment that these thermal power plants have.

So, NTPC have a well-developed approach when we are talking about the international strategy, as they have tried to source better quality coal from foreign countries and with the joint ventures they have with the firms in the neighboring nations. But the one suggestion that I would like suggest would be to do better research into the economic and environmental conditions in the country that they are planning to expand to so that they can avoid the obstacles that they faced when they went with the joint venture with BPDB.