Coal news and updates

India's leading power producer NTPC will commence mining operations from a block in Jharkhand and ramp up output to 15 million tonnes in three years to reduce its dependence on costly imports.

 

The state firm, with a total capacity of 41,784 mw, consumes about 175 million tonnes coal to fire 16 thermal projects. The Pakri-Barwadih block in Jharkhand, allotted nearly a decade ago, will help meet its fuel requirement.

 

"We will reduce dependence on imported coal subsequently. By 2017, we are aiming to meet 20% of our coal requirements from seven captive coal blocks," said an NTPC official. It has spent over Rs 1,000 crore for land acquisition and basic infrastructure to produce coal.

 

NTPC's coal imports are rising as the company is expanding capacity. Coal imports are estimated to rise to 16 million tonnes during the current fiscal year compared to nine million tonnes a year ago. NTPC is also finding it challenging to procure desired quantity of coal from public sector unit Coal India and had had a public spat with the monopoly supplier over issues of quality and reliability.

 

It signed a tripartite escrow agreement with Coal Controller and State Bank of India, on Tuesday in Kolkata, to start mining. "Signing of escrow account is the final permission for opening a mine. With this, all necessary clearances required to commence mining operation at Pakri-Barwadih block are in place, and we are expected to commence mining operations anytime soon," said the official.

 

A mining company needs to open an escrow account to deposit money at the end of every year to ensure proper closure of the mine in a phased manner after coal extraction. Environment and forest ministry has already accorded its clearances to NTPC to commence mining activities.

 

NTPC produces 28% of country's electricity through 16 coal-based, seven gas-based, two solar renewable and seven joint venture power stations.

 

The power sector has faced an acute shortage of domestic coal which is cheaper than imported fuel. India's power generation capacity has grown rapidly in recent years as private investment came into the sector in a big way. But coal mining operations of state-run Coal India Ltd have not kept pace with the expansion, prompting many power firms to seek captive coal mines to get reliable supply of lowcost fuel. Several power projects built in recent years are stranded or running at sub-optimal capacity due to the shortage of domestic coal. 

 

Source: ET