The state-run National Thermal Power Corporation (NTPC), which proposes to increase its generation capacity to 50,000 MW by 2012 from the present level of 27,404 MW, has firmed up plans to enter into captive power generation and retail distribution in the upcoming greenfield special economic zones (SEZs). NTPC's move is crucial especially when the centre has so far notified as many as 195 SEZs across the country under the SEZ Act, 2005. "NTPC always tries to explore opportunities in various power generation projects. The captive power generation and retail distribution is one of such option. The captive power generation projects with capacities of 50 MW, 100 MW and 200 MW are being considered in SEZs. The priority is given to SEZs located nearer or on the gas grid projects. Initially, states like Andhra Pradesh and Gujarat are under consideration as the proposed captive power projects in SEZs can be run on gas and the availability of gas won't be a problem,' sources told FE. However, they made clear that NTPC is still looking into regulatory issues and power pricing. "Whether the costing of power comes under the jurisdiction of power regulators, and if yes, then at what tariff it will be feasible for NTPC to sell power. These issues are being internally discussed at this point,' sources added. As a beginning, NTPC is involved in exploratory job to pursue its plan in this regard in Andhra Pradesh. It weighs the option of joining hands with the Andhra Pradesh Industrial Infrastructure Corporation (APIIC) for the purpose. The APIIC does not meet the qualifying criteria to work with NTPC as a joint venture partner as its net worth is less than Rs 100 crore. However, it is likely that NTPC may amend this norm given that the state-run APIIC has adequate land holdings to facilitate and develop such projects. Interestingly, APIIC controls some 80,000 acres of land across the state, and had expressed interest in joining hands with the power major to tap the captive power generation and retail distribution potential in projects being developed by the infrastructure company, especially for its Visakhapatnam SEZ. Development of the SEZ is likely to lead to a growth of demand for new generation capacity. According to an estimate, the total load in the newly developed townships would touch 250 MW by the year 2012-13.