https://www.engineeringnews.co.za
Coal|Energy|Power
Coal|Energy|Power
coal|energy|power

India’s State power giant looks to coal imports to avoid crunch

21st January 2022

By: Bloomberg

  

Font size: - +

India’s largest electricity producer is stepping up a campaign of coal imports as the nation seeks to avoid a new power crunch.

State-run NTPC has sought about 10-million tons of overseas coal since it issued its first international tender in two years in October, according to documents posted on its website. The reversal after years of supporting the government’s push to favor local producers underscores concern about a repeat of fuel shortages that triggered outages and power restrictions last year.

The New Delhi-based company is aiming to secure cargoes starting from April, when power consumption in India typically surges on summer cooling demand.

Indian power producers are returning to the seaborne coal market as they rebuild stockpiles after last year’s energy crisis, ignoring relatively high global prices and assurances that domestic miners will lift output. While that’s a setback to the government’s agenda to prioritize local production, it should help avoid any repeat of 2021’s squeeze, when reserves dwindled to just a few days’ worth of supply.

NTPC has already agreed to buy one-million tons of overseas coal from Adani Enterprises Ltd. and has published tenders, including one for 5.75-million tons issued last week, for the remainder.

The “tenders indicate that they expect a very strong summer demand for power and they want to keep all their supply options open,” said Rupesh Sankhe, vice president at Elara Capital India Pvt. in Mumbai. “They have had coal quality issues with Coal India recently and imports may be a way to hedge that risk too.”

NTPC, along with its joint ventures, has generation capacity of about 68 GW, of which 83% is fired by coal, according to its website. That makes the company India’s largest consumer of the fossil fuel, burning 170-million tons a year, or about a fifth of the country’s total.

Edited by Bloomberg

Comments

Showroom

Weir Minerals Africa and Middle East
Weir Minerals Africa and Middle East

Weir Minerals Europe, Middle East and Africa is a global supplier of excellent minerals solutions, including pumps, valves, hydrocyclones,...

VISIT SHOWROOM 
AutoX
AutoX

We are dedicated to business excellence and innovation.

VISIT SHOWROOM 

Latest Multimedia

sponsored by

Magazine round up | 19 April 2024
Magazine round up | 19 April 2024
19th April 2024

Option 1 (equivalent of R125 a month):

Receive a weekly copy of Creamer Media's Engineering News & Mining Weekly magazine
(print copy for those in South Africa and e-magazine for those outside of South Africa)
Receive daily email newsletters
Access to full search results
Access archive of magazine back copies
Access to Projects in Progress
Access to ONE Research Report of your choice in PDF format

Option 2 (equivalent of R375 a month):

All benefits from Option 1
PLUS
Access to Creamer Media's Research Channel Africa for ALL Research Reports, in PDF format, on various industrial and mining sectors including Electricity; Water; Energy Transition; Hydrogen; Roads, Rail and Ports; Coal; Gold; Platinum; Battery Metals; etc.

Already a subscriber?

Forgotten your password?

MAGAZINE & ONLINE

SUBSCRIBE

RESEARCH CHANNEL AFRICA

SUBSCRIBE

CORPORATE PACKAGES

CLICK FOR A QUOTATION







sq:0.182 0.246s - 179pq - 2rq
Subscribe Now