NTPC moved towards to fulfill its requirement by own and is all set to get coal from its own mines at Pakri Barwadih coal block, Jharkhand
India’s largest power generator, NTPC has got coal blocks allocation for its own consumption and it is waiting for last minute approvals and clearances which are expected shortly. NTPC is stepping up on a strategy of backward integration to fulfill its coal requirement and will start mining coal.
It is estimated that upon final approval and clearance, NTPC will start its mining activity immediately. NTPC is projecting to mine around 3 MnT in first year, in second target will boost its mining operation and will mine around 8 MnT and in next step NTPC is targeting to mine around 15 MnT of coal from Pakri Barwadih coal block. It will be an achievement for NTPC to reach at all set targets.
NTPC also projected that their coal demand will increase as they estimated an increase in power generation and despite of having captive coal blocks, they will have to import around 16 MnT of coal in FY14 and in FY16 they need to import around 22 MnT of coal to feed their power plants.
However, it is also expected that in FY17 NTPC coal imports may drop as the captive mines will be fully operative and will import around only 12 MnT of coal.
Other Allotted Blocks
NTPC has also allotted three other blocks in Jharkhand apart from Pakri Barawadih, which are Kerandari, Chhatti Baritu and Chhati Bariatu II.
Apart from above blocks, government announced additional four blocks allocation of two each in Chhattisgarh (Banai and Bhalmula) and Odisha (Chanribila and Kudanali-
Laburi), estimated to contain around 2 billion tonnes together.
NTPC Fuel Status
NTPC is the India’s largest power generator and during FY 14 it is estimated to have around 178 MnT of coal. Largely NTPC is receiving coal from Coal India by supply pacts but to ensure uninterrupted supply from Coal India, NTPC had to import around 9% of its total requirement which is around 16 MnT.
NTPC’s almost 85% fuel requirement is fulfilled by coal and rest met by gas which is supplied by Reliance from D-6 block, as per agreement signed in 2009. Empowered Group of Ministers (eGoM) had allocated 4.46 million standard cubic metres per day (mmscmd), out of which 2.30 mmscmd is coming from Reliance. As their current supply contract will expire in March, 2014 and NTPC looking towards its continuance as it is essential to keep its power stations at Dadri, Anta, Auriya and Faridabad going. However, from both ends no firm commitment has been received but Reliance has asked some changes in Gas Sale Purchase Agreement along with interventions from the Ministry for resolving it.
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