Coal India, largest coal producer in the the country has
sought nod from it's customer to import coal under cost plus basis under new
FSA (Fuel Supply Agreement), though not all have agreed on the proposition.
NTPC, largest customer of coal India, says it will only buy
if cost is lower than their current cost of imports.
“We are ready to take imported coal from Coal India if
they can supply at a price which is lower than our current cost of
imports. We used to import through state agencies but subsequently decided
to import on our own. This resulted in a cost savings of 20 per cent on
imports,” explained NTPC chairman Arup Roy Choudhury.
If CIL imports coal through state agencies, it may not
be able to offer a cheaper rate to NTPC, which may prompt the largest
power producer to opt out.
According to estimates, CIL will have to import around
18-19 million tonnes to meet its import obligations if all its 50-odd
consumers, who are to sign the FSA, agree. NTPC will be consuming half
this amount, but if it opts out, CIL may be importing only about 9-10 million
tonnes.
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