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Coal Sourcing For Power Plants
Coal Sourcing For Power Plants
Coal Sourcing For Power Plants
Background
Coal sourcing continues to be the key hurdle faced by most upcoming power projects in the country. A large set of developers are plagued by the problem of having invested in building a power plant but no coal to run the same. The three sources to coal supply in the country are government mines, captive mines and imports. Currently, coal supply is dominated by government mines led by CIL (~62% of demand) followed by SCCL, imported coal (~15% of demand) and captive mines. Over the last decade power capacity addition in the country has far outstripped coal supply growth leading to acute shortage of a once abundant commodity. This can be largely attributed to CILs inability to develop new blocks and ramp up production in existing blocks coupled by weak rail infrastructure in the country. The other options in terms of securing coal from imports and captive block development also saw negative movement. Foreign governments increased duties and taxes on coal imports thus making them more expensive, resulting in a higher variable cost of power. Besides only a handful of captive blocks allocated to the private sector got developed with a majority lost in the maze of securing government clearances. It is quite clear that in the short term securing coal imports is the only solution to the problem of coal shortage. Over the medium to long term CILs production and captive block development needs to substantially ramp up in order to tide over the problem. We are confident that our Conference on Coal Sourcing for Power Plants will expose you to various issues and opportunities in the space and leave you with clear indicators on how best to tackle this problem.
Qty & Value in Mn Tonnes and Mn Rupees 9M FY13 Rs./Tonne Quantity Value Rs./Tonne
Indonesia Australia South africa USA Russia New zealand Others Total
10,953
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