CIL’s increased production target for FY16, is being supportive for NTPC as the company has filled with sufficient stock and seems less dependent on imported coal till Sept’15.
NTPC, India’s largest power producing company as well as largest consumer of imported coal is being less dependent on imports this time since the beginning of current fiscal and is expected to run on domestic coal for few months. Currently, the power major is running its plants through domestic coal and is not expected to place any order for imports till Sept’15. It is likely to conclude Q2 of FY16 successfully with sufficient stocks availability at its thermal power units.
The PSU, which is also the country’s largest power producer, imports about 10-16 MnT of coal every year. In the current situation, the company has not floated any tender for imported coal which had earlier called for about 8 MnT imported coal in June’14.
An official from the PSU stated, “The Company is currently not looking for imported coal and hopes to cater the need of its power plants with domestic coal till Sept’15 as CIL’s supply is sufficient to run their plants for three months.”
He also added that the company is expected to float 4 different tenders with requirement of 7 MnT of imported coal during Sep’15-Oct’15 in this year.
At present, total coal stocks at plants are close to about 0.1 MnT. With the domestic coal availability, the company can comfortably tide over the monsoon till September. However, it will need to take a fresh look at the stock situation after September.
Meanwhile, during the same period of FY15, the company was struggling with fuel shortage as its six major plants were facing critical level of coal stock position. On the other side, many of the country’s power units had only 2-3 day’s stock level during the same period. Indian Ministry’s development plans, coupled with increased domestic availability by CIL, are reflecting a positive mode to control constantly rising imports of the country.
Domestic and Imported Coal Supply
NTPC fulfills its major coal requirement through domestic supply that is about 85-90% and the rest comes through imports. The PSU’s have planned to confirm more domestic availability and reduce imports of thermal coal to zero in the next four-five years.
Although the PSU had imported about 16 MnT of coal in FY15, imported coal becomes more costly than the domestic; company’s decision to reduce import may in turn minimize power generating cost as well as lower tariffs.
NTPC’s present installed capacity is 44,398 MW comprising 39 generating stations. It is also establishing 4,000 MW imported coal-based thermal power plant in Andhra Pradesh. The company had proposed a coal import tender in July’15 for its Visakhapatnam Plant.
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