NTPC to import 5.4 million tonnes of coal in first half of FY 24

15 Mar 2023 , 07:34 AM

To make up for the gap in supplies during the first half of the 2023–24 fiscal year, the government-run power firm NTPC plans to import almost 5.4 million tonnes of coal, Parliament was informed on Tuesday. 

To address a scarcity of local coal during the first half of the financial year 2023–24, NTPC plans to import about 5.4 million tonnes of coal for its group units, according to a written response from Power Minister R K Singh to the Rajya Sabha on Tuesday.

The prices of imported coal and domestic coal can’t be compared in a simple manner as the imported coal has a higher calorific value.

The cost of imported coal is determined by worldwide coal indices, the country of origin, and other variables that change depending on the global demand-supply situation, such as ocean freight and insurance.

Every power generating firm imports coal as per their requirements. The minister stated to the House that the cost of fuel, including imported coal, is added to the generation tariff in accordance with the rules of the relevant Electricity Regulatory Commission.

He said that the country’s coal-based thermal power plants (TPPs) have their coal stock positions monitored daily by the Central Electricity Authority (CEA).

The coal stock at these thermal power plants as of March 5, 2023, is around 34 MT, which is enough to run the plant for 12 days at a need of 85% PLF, the minister said, adding that this is almost 50% of the coal stocking criteria established by the Central Electricity Authority.

The peak demand for this summer is predicted to be over 230 GW, Singh continued.

The Ministry of Power has taken numerous measures to make sure that the summer’s peak demand can be satisfied.

Thermal power plants are not to take any planned outages between April and May 2023, according to a directive from the government.

A system for the operationalization of about 5,000 MW gas-based power plants for 18 days during the crunch time has been approved by the government (Apr-May 2023).

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