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Even as coal availability as a fuel is expected to a cause for concern among industry, Gujarat and NTPC are set to save Rs 350 crore by coal swapping, according to Saurabh Patel, minister of finance, Government of Gujarat.
Speaking at the inaugural session of EnerAsia 2014, a pre-Vibrant Gujarat global energy summit, Patel said that, on a pilot basis, state-owned GSEC and NTPC will enter into swapping of about one million tonnes of coal wherein the latter's imported coal will be taken by state-owned GSEC who in return will give its coal sourced from Korba in Chattisgarh to NTPC.
"We will save Rs 350 crore from swapping coal. This has potential to go up to 2.5 million tonnes. I am sure, in the coming months, there will be many more companies who will be swapping coal," said Patel.
Raising issues regarding lack of fuel availability such as that of gas, along with issues of quality of coal, fuel pricing and cost of power, Patel said that Gujarat was set to face tough times ahead.
"In the next six months or one year, tough times are ahead for Gujarat. We will be more dependent on imported coal for the additional expansion which we are planning. Looking at the existing policies with regards to imported coal, it is important we have a mix of fuel," said Patel while adding that the state is planning to increase its capacities by 9000 Mw in next three years from current 23000 Mw to 32000 Mw.
"So availability is not an issue for Gujarat as far as power is concerned. Rather, it will be cost," he said.
Drawing attention to power plants not running on full capacities, Patel said that the quantum of gas based on KG predictions did not materialise leading to plants not working on full capacities due to lack of fuel. "Even in Gujarat, we have 4000 Mw lying idle because of unavailability of gas. The Centre will have to take a strong stand and come out with strong policies by which all sectors will have to share burden of high gas price. One of the remedies will be pooling of gas. It will also be important for the new LNG terminals to focus on new markets," he said.
Meanwhile, Patel said that the state is continually adding sub-stations and transmission lines but due to high land costs, the process will see resistance from farmers.
