Form of words:
New Delhi: NTPC Ltd, India’s top power producer, is seeking to import coal for the first time in two years, underscoring concerns about shortages, even as the supply shortfalls gradually begin to ease.
The New Delhi-based company has floated a tender for requisitioning 1 million tonnes of foreign coal, bid documents posted on the company’s website show. The fuel will be used primarily at power plants located far from domestic mines, which are most vulnerable to disruptions. A second tender floated by NPTC on behalf of Damodar Valley Corporation, which is also a state-run power producer, is seeking an additional 1 million tonnes.
India has been battling a coal shortage since at least August, which produces about 70% of the country’s electricity, leading to curbs on power supplies to some energy-hungry industries. The decision to enter the marine coal market, especially at a time when global prices are rising, reflects NTPC’s caution on the supply outlook.
India’s daily supply of coal to power plants has begun to increase and reserves rose to 7.6 million tonnes on Wednesday, the highest level since October 5, according to power ministry data. This is still only a quarter of the level from a year ago, and equates to an average of four days’ consumption.
In its tender, which is closing on November 1, NTPC is seeking delivery of thermal coal with a gross calorific value of at least 4,700 kcal per kg. According to Rahul Bhandare, chairman of coal trading firm Knowledge Infrastructure Systems, this, along with other requirements on moisture and ash content, suggest that the coal may have come from Australia. –bloomberg
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