NTPC, the country’s largest power producer, has set the coal production target of 26 million tonnes (mnt) for FY23 with planned operationalisation of Chatti Bariatu mine on the sight.
At present, the company has commenced coal production from three mines – Pakri-Barwadih, Dulanga and Talaipalli – that were allocated by the Ministry of Coal.
Total coal production from these captive mines stood at 14.02 mnt in FY22, registering a growth of 27% compared to 11 mnt in FY21. The company majorly procures coal for running its thermal power plants via fuel supply agreements (FSAs) with coal companies while a minimal quantity is sourced from the captive mines.
In FY22, the company received 195.03 mnt of coal for its thermal power stations. Of this, procurement via FSAs was 169.77 mnt, 14.7 mnt from captive mines, and 8.09 mnt was through bridge linkage/bilateral MoUs. On the other hand, coal to the tune of 2.47 mnt was imported.
Uptick in imports
With power demand posting strong growth in FY22, the company has increased coal sourcing via imports to meet the shortfall rising from inadequate domestic supplies upon government’s directive.
In its annual report, NTPC has reported procuring 16 mnt of imported coal in three tranches of 7 mnt, 5 mnt and 4 mnt. Contracts have already been awarded for procurement of 6.75 mnt while procurement of 6.25 mnt is under process. For JVs, contracts have been awarded for 1.8 mnt while 0.67 mnt is under process.
During the first quarter of FY23 (Apr-Jun, 2022), coal imports saw an exponential growth of 821% y-o-y to 4.33 mnt compared to 0.47 mnt in Q1FY22.
The development of coal mines would help the company to mitigate costlier imports and further strengthen its fuel security as it aspires to become one of the largest captive coal miner in the country.
Project status
Currently, the company has seven coal blocks with an estimated peak rated mine capacity of 71 mnt per annum. Apart from the three operational mines, the remaining mines are under different stages of development.
Mining operations have begun in Chatti-Bariatu coal mine after all statutory clearances and priority land were secured. Mine Developer cum Operator (MDO) for this mine has also been appointed.
For Kerandari mine, major statutory clearances are in place, but appointment of MDO along with rehabilitation and land possession are under progress.
In Badam coal mine, stage-I forest and environment clearances have been transferred, while proposals for stage-II forest clearance, government land transfer, mining lease, etc. are under process. Tender for appointment of MDO is also floated for Badam mine.
Mining operations in Kerandari and Badam coal mines are expected to start in FY24.
The company is also developing Banhardih coal mine under the flagship of Patratu Vidyut Utpadan Nigam Limited (PVUNL), a subsidiary company formed between NTPC and government of Jharkhand.
Mining plan for this mine is approved by coal ministry, while process for environment and forest clearances has been initiated. Appointment of MDO would be completed post receipt of various statutory clearances.
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