NTPC may prefer Indonesia to Africa, Oz for coal mines

Country's largest power producer NTPC, which is scouting for coal properties abroad to fuel its power plants back home, may zero in on Indonesia for its proximity, compared to Australia and Africa.

"If you look at the logistics of transportation, Indonesia is the nearest, than Australia... We are not averse to importing from Africa," NTPC CMD Arup Roy Choudhary said.

NTPC may pick up stake in two coal mines in Indonesia -- East Kalimanthan and Sumatra. The company is looking at striking a deal that is financially feasible.

"Ultimately it would boil down to what would be the cost. If we bring costly coal, customers like state electricity boards cannot afford it," Choudhary said.

The company is also scouting for coal properties in the Australian continent and may acquire coal blocks in Queensland and North South Wales. It has identified 2-3 such properties.

NTPC coal requirement is likely to touch 165 million tonnes (MT) in the next financial year (2011-12), of which it may import 12-15 MT.

At present, state-owned trading firms State Trading Corp (STC) and Minerals and Metals Trading Corp (MMTC) source coal from abroad on behalf of NTPC.

"In one year's time, say by December next year, we would be able to import it ourself," he added.

NTPC, currently generates over 32,000 MW of power, of which nearly 60 per cent is coal-based. It is planning to ramp up this capacity to 50,000 MW by March 2012.