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NTPC to lock in long-term coal supply

27 Nov 2013

NTPC, India’s biggest power producer, said it would sign a pact to ensure long-term supply of imported coal beginning 2018 as it looks to lock in commitments when globally prices are low and local supplies, mostly from Coal India, unlikely to meet the growing demand.

While NTPC has been importing a part of its requirement of coal for short periods the current initiative is for a long-term pact where supplies come at a little premium, an NTPC official said.

The power producer today floated an expression of interest for entering into a coal supply agreement for supply of up to 12 million tonne (mt) a year of imported coal on long-term basis ranging from 10-15 years.

“NTPC has massive ongoing capacity addition plans with around 20,000 mw projects under construction. The company is contemplating setting up some of their new power project capacity based on 100% imported coal,” the document said adding the first consignment is required not before 2018.

NTPC’s coal imports have been going up fast; this year it is projected to be 16 mt, more than 70% more than 9 mt imported in fiscal 2013.

The announcement comes on the day when the inauguration of transportation of imported coal via inland waterways.

Source: DNA