Coal news and updates

NTPC may finalise pricing of imported coal at $86-87/ton CIF

October 23: NTPC Limited is likely to place an order for 5.0 million tons (mt) of imported coal for its 16 power plants spread across various parts of the country at $86-$87 per ton CIF East Coast ports, an industry source told ICMW.

"The power generator had received offers from only two companies – Adani Enterprises and Coal & Oil – at around $89 per ton CIF, but the negotiations are on and NTPC is likely to place the order at a price of around $86-$87 per ton," the source added.

"The price being negotiated is for delivery of coal up to ports and there would be additional charge for handling and transporting the material to power plants," the source said.

An official with NTPC refused to comment on industry inputs when contacted by ICMW, but said: "The offers are being evaluated. We have not yet finalised."

The NTPC official further said, at present, its power plants are getting sufficient supply of domestic coal, but they will soon finalise the deal for imported coal.

Earlier, there was speculation that NTPC might scrap the tender in view of only two offers received. However, ICMW had reported on September 20, quoting an official from the company that, "We are evaluating the received bids and if everything goes well we may go ahead with placing the order."

Incidentally, NTPC had floated separate tenders in July itself to procure 5.0 mt of imported coal for its 16 plants, but had scrapped them due to low response. It had re-floated the tender in August, but had extended the opening date to September 19.

NTPC was looking to procure 0.4 million tons coal for its Dadri, Tanda, Unchahar plants, 1.25 mt for Farakka, Kahalgaon, Badarpur and Barh, 0.75 mt for Korba, Sipat and Mouda, 0.30 mt for Simhadri, 0.70 mt for Simhadri and Ramagundam, 0.85 mt for Singrauli, Rihand and Vindhyachal plants and 0.75 mt for Talcher and Talcher Kaniha.

NTPC has been given a target by Central Electricity Authority (CEA), a wing of the Ministry of Power, to import 16.60 mt of coal in 2013-14 and during the first half (April-September) of the year, it has got delivery of only about 7.20 mt.