NTPC plans coal import to meet shortage

National Thermal Power Corporation (NTPC) is looking at importing 175,000 tonnes of coal in order to meet the demand from its coal-based plants. The company has asked MMTC Ltd to import coal to make up for the shortage in domestic supply.

"MMTC has been requested to procure the coal for NTPC. We are looking at imports of 175,000 tonnes each month and expect to start getting supplies in March," said a senior ministry official.

NTPC needed around 125,000 tonnes of coal in the eastern coast and 50,000 tonnes in the western cost, officials said, adding the position would be reviewed after a few months.

A gap of about 10 million tonnes per annum between demand and supply of indigenous coal is expected during 2004-06. The power sector is the major consumer of coal in the country, consuming more than 77 per cent of domestic coal production.

Further, owing to capacity expansion in the power sector and a relative slow development of mining projects, power plants have been facing a coal shortage.

In the past, NTPCs Singhrauli, Rihand, Vindhyachal, Talcher and Korba plants had reported very high rate of coal stock depletion because of sluggish supplies.

The company's captive block in Pakri Barwadih coal block in the North Karanpura coalfields in Jharkhand should be ready in another two-and-a-half years, said senior company executives. Production in the coalfields depend on environmental and regulatory clearances. Coal from Pakri Barwadih is to be used for projects which face shortage.

"At present, the company has no plans for a joint venture. It will be executed as an NTPC project," said an executive.

The power ministry had asked the NTPC to float an expression of interest for a joint venture partner for the proposed exploitation of captive coal mine.

The company is likely to appoint a consultant for the project soon. NTPC would be able to produce about 20 to 25 million tonnes of coal annually from the allotted captive block.

NTPC proposes to use coal from this block for its Simhadri (Andhra Pradesh), Tanda, Unchahar and Dadri (all in Uttar Pradesh) projects. These projects are not at the pit heads and have to rely on coal allotted under the coal linkages agreements.