Financial Daily from THE HINDU group of publications
Thursday, Aug 04, 2005


News
Features
Stocks
Port Info
Archives
Google

Group Sites

Industry & Economy - Power


Centre to locate new power plants along coast — To use blended coal as feedstock

Anil Sasi

New Delhi , Aug. 3

SHORTAGE of coal has forced the Centre to rethink its thermal generation strategy in favour of locating future coal-fired projects near the coastline and using a blend of imported and domestic coal as feedstock.

Hitherto, the Central power utilities such as NTPC and State sector projects have focussed on setting up pithead-based plants and using only domestic coal as fuel.

According to Government officials, the move is aimed at the twin-pronged benefits of extending the life span of the country's coal reserve, expected to last another 50 years or so, while also optimising the generation efficiency of thermal stations by mixing high-calorific imported coal with the low grade domestic coal.

Also, mixing domestic coal with the more expensive imported coal would ensure that the generation tariffs are kept under check, officials said.

"We are discussing the issue with Central utilities as well as State Electricity Boards (SEBs). The strategy of locating stations near the ports and using a mix of imported and domestic coal would help tide over the ongoing coal shortages as well as improve generation efficiency through the use of high-quality imported coal. In the medium to long-term, the move would have an impact on the country's energy security, since our coal reserves are limited," a Government official said.

The move to shift to a mix of domestic and imported coal comes in the wake of the ongoing coal shortage projected to continue till 2008-09.

Coal import opportunities are being explored in South Africa, Indonesia, Australia and China, where the coal quality is better with gross calorific value generally around 5,300-6,000 kilo calories/kg, while the calorific value of domestic coal is only around 3,000 kcal/kg, officials said. The calorific value of blended coal is higher at 4,500-4,800 kcal/kg. Besides the higher calorific value, the blended coal is superior due to its lower ash content as compared to domestic fuel, officials said.

According to Government data, this fiscal alone, power majors including NTPC, Reliance Energy, several of the SEBs and private generators will import over 13.45 million tonnes of coal to tide over the shortages.

NTPC will import 3.98 million tonnes (mt) of coal and has already mandated MMTC to import the fuel.

Article E-Mail :: Comment :: Syndication :: Printer Friendly Page


Stories in this Section
Bay `low' beats forecast


Here comes the Sun
3.7 m Indians working in Gulf
Chennai's chemical corner — an extended mall
TN launches `equitable growth initiative' — World Bank to pitch in with expertise
Now, young MPs ponder over the CMP
India to participate in `Global Village' festival in Dubai
$2.5 lakh raised for children with heart ailments
Change in govt won't affect gas policy: Iran
Bid to achieve better refining margin — HPCL, BPCL plan to use more of cheap crude
Drug cos face daunting task of destroying damaged stocks
Centre to locate new power plants along coast — To use blended coal as feedstock
Udupi Chamber hails PPA with Nagarjuna Power
Steel prices may bounce back in third quarter: Assocham
Plea to extend service tax payment deadline
Speed up projects to tap floodwaters: YSR
DFID to fund more projects in AP
Communications meet at Hyderabad
LPG distributor fined Rs 20,000 for failure to provide connection
PAC seeks clarity on moves to speed up I-T refunds
`Centre seeking sector-specific SEZ plan from Punjab'
Commerce Ministry sees 17 pc growth in exports this fiscal
FIEO submits memorandum on `negative profits' to PM's council
JNPT, Mumbai port limping back to normalcy
Fiat reports damage at Kurla plant due to rains
Maharashtra: Rehab package for businessmen, farmers
Insurers apprehend bigger dent from Mumbai claims — Defaults in Fac Re arrangements seen
Mumbai sees corporates' human face
Financial planners helping flood victims
Toyota's service offer for rain-hit vehicles
The day after
Thrissur to host ayurveda meet
ISO certification


The Hindu Group: Home | About Us | Copyright | Archives | Contacts | Subscription
Group Sites: The Hindu | Business Line | The Sportstar | Frontline | The Hindu eBooks | The Hindu Images | Home |

Copyright 2005, The Hindu Business Line. Republication or redissemination of the contents of this screen are expressly prohibited without the written consent of The Hindu Business Line