Tuesday 28 August 2012

India’s NTPC sets 16Mt import target

By: Ajoy K Das
28th August 2012
KOLKATA (Mining Weekly)
- India’s largest government-owed power producer NTPC Limited would import some 16-million tons of coal during the current financial year to take advantage of the softening commodity prices in international markets.

NTPC Limited would add 4 160 MW of thermal power generating capacity in 2012/13 and would source 137-million tons of coal from Coal India Limited (CIL). However, the company would be required to import 16-million tons to bridge the shortfall in supplies from domestic sources, a company official said.

“International thermal coal prices are at the bottom. From an end-user’s point of view, we do not expect international prices to move above the $100/t mark over the next ten to 12 months,” the official said.

“Coal of grade 6 000 kcal/kg was being offered at $89/t, free on board (FOB) and we expect this level to sustain. NTPC planned to take advantage of these levels and do not anticipate any problem in meeting our requirements through imports,” he added.

In 2011/12, the thermal power plants of NTPC consumed 140-million tons of coal of which 11.89-million tons were met through imports.

According to a results framework document for the power sector, approved by the Power Ministry, total coal supplies for thermal power generation by CIL during 2012/13 would be an estimated 347-million tons, up 10% over previous fiscal. But this would still leave a supply gap of 70-million tons to be met through imports by CIL.

CIL, the world’s largest coal miner, accounted for about 80% of domestic coal supplies with production of around 434-million tons a year.

However, the Power Ministry wanted CIL to resort to import of coal exclusively for government owned thermal power companies like NTPC and those owned by provincial governments and not power companies in the private sector. It has also drawn up a list of such companies for which CIL should import coal and has forwarded the list to the Coal Ministry for issuing the necessary directive, an official in Coal Ministry said.

Meanwhile, the Coal Ministry has assured NTPC Limited coal linkages for its 11 000 MW of greenfield thermal power projects that were scheduled to go on stream by 2017, and CIL has been directed to conclude agreements within the next two months, the official said.

NTPC has projects to add 14 038 MW of additional power generating capacity by 2017 of which 2 160 MW has already been commissioned since March 2012.

NTPC has an installed capacity of 37 000 MW from its 15 coal based power plants, seven gas based plants and five other gas and coal generating plants which the company operates through joint ventures.

According to independent analysts, the move to hasten coal linkages to all thermal power projects under implementation and scheduled for commissioning over the next two years, Indian coal import forecast for 2013 would have to be revised from 116-million to 120-million tons and further to 130-million tons in 2014.

Edited by: Esmarie Swanepoel

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