Prices are same, but power companies look to foreign shores for coal

Power producers are on the lookout for cheaper coal even as the price of imported coal is almost on a par with that of the domestic variety.
 
Distress purchase and Colombian shipments are some of the new sourcing strategies.
 
“Indian companies are cost-sensitive and on the lookout for cheaper options, especially when vessel freight rates are favourable,” said Deepak Kannan, managing editor, S&P Global Platts.
 
This focus on cheaper coal has led to two major private power producers, Tata Power and JSW Energy, devising their coal-sourcing strategies.
 
“We try to buy distressed shipments, for instance, shipments