India’s largest power producer, NTPC, has stepped up efforts to raise coal procurement via imports in a bid to ensure ample availability before the monsoons.
In the latest development, the state-owned company has floated three separate tenders for procuring 4.53 million tonnes (mnt) of imported coal by 23 May, 2022. Notably, this is the second time the company is booking imported coal in the current fiscal: it had invited bids for 4.93 mnt last month.
The company operates a total of 23 coal-based plants which are located at different parts of the country. Except Darlipali, the entire gamut of plants has been included in the tender for coal procurement this time.
Latest coal tenders
Source: Company website, CoalMint Research | Quantity in mnt
It is important to note that Darlipali sources coal from the captive coal blocks Dulanga and Pakri Barwadih, which have been allocated to the company.
These tenders would be carried out by means of competitive bidding against which coal is to be delivered on freight on-road (FOR) basis.
State electricity boards to follow suit
The Power Ministry has advised state electricity boards to import coal for blending at a time domestic coal supplies are struggling to keep pace with rising power demand.
In a meeting held recently, the government reviewed the progress made by the electricity boards of various states for importing coal.
It was informed that Tamil Nadu and Maharashtra had already placed orders for imports, while Rajasthan and Madhya Pradesh were in the process of issuing the tenders.
At the same time, Punjab and Gujarat were in the advanced stage of finalisation of the tenders.
As per Ministry data, coal imports by the power plants during FY2021-22 (till February, 2022) had fallen 43% y-o-y to 24.16 mnt. However, imports this year are expected to register a manifold increase upon receipt of shipments against the supply tenders that have been issued.
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