India's leading state owned power manufacturer NTPC Ltd will double the purchase of Imported coal this year to control fuel shortages at plants. NTPC is targeting import of 17 million tonnes of thermal coal this FY year (starting 1 April), compared with 9 million tonnes the previous year. NTPC plants in the states of Uttar Pradesh, Orissa, Chhattisgarh and Andhra Pradesh faces shortage of coal. Increasing imports has become a must for NTPC since many of its plants are running with alarmingly low coal stocks.
More than 33 power plants in the country, with a total generation capacity of 31,320 megawatts, had coal stocks of less than seven days as of 21 May, according to the power ministry’s Central Electricity Authority, which monitors the development and operation of power plants in the country. Stocks of less than 15 days are considered critical.
Declining international prices are also encouraging Indian power producers to import coal. Indonesia, the world’s biggest exporter of power-station coal, cut its reference thermal coal prices by 3.65% for May, bringing them to the lowest level in five months. Falling international coal prices and a lack of availability from domestic sources is fuelling India’s coal imports. Indonesian reference prices for this month stand at $85.33 per ton for coal of 6,322 kilocalories per kilogram. Coal India’s price for the grade is Rs.3,970 ($71.50) per ton.
NTPC has placed an order for 7 million ton of imports though tendering, Adani Enterprises Ltd won the tender for 4.5 million ton and state-run trading company MMTC Ltd won the bid for 2.5 million ton. NTPC will import another 10 million ton in two phases during the year.
– Sources
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