NTPC lamps to light up rural India

NTPC Ltd plans to manufacture light emitting diode lamps through a joint venture.

The move was prompted by the need to reduce demands on rural electricity and the power ministry's belief that LED lamps should be promoted in rural areas as they are energy efficient.

The proposed venture would have a debt equity ratio of 30:70 and NTPC would have the majority stake in the proposed venture, an NTPC official told Business Standard.

The company is firming up plans to foray into manufacturing of LED lamps with a private foreign technical collaborator.

"NTPC may take consultancy help from research institutions like IIT Kharagpur to identify overseas technical collaborators," the official added.

A feasibility study and detailed project report were made to calculate the cost and other logistics issues. "The DPR is expected to be submitted shortly to the board for approval, after which it will be sent to the power ministry for its approval," the official added.

Under the Rajiv Gandhi Grameen Vidyutikaran Yojana, the power ministry plans to electrify 40,000 more villages during 2006-07, as compared to 10,000 villages in 2005-06.

A target of electrification of around 120 odd villages has been fixed under this programme for 2006-07. The total outlay under RGGVY has been fixed at Rs 3,000 crore (Rs 30 billion) in 2006-07, up from Rs 1,100 crore (Rs 11 billion) in 2005-06.