NTPC might build plant to run on imported coal

NTPC, India's biggest electricity producer, is considering building its first power plant to run completely on imported coal to prepare for local shortages and to take advantage of a fall in global prices.

The state-run generator is studying the option to set up a 2,400-Mw plant in Pudimadaka in Andhra Pradesh, Director Finance Kulamani Biswal said in an interview. NTPC is weighing the plan amid delays in starting its first coal mine and Coal India, the nation's monopoly coal producer, missing output targets. In addition, a drop in the international prices of thermal coal and rising domestic freight costs have narrowed the difference with imported fuel.

"Considering the challenges of railway logistics, such a plant would be crucial to our expansion strategy," Biswal said. "Coal prices have been falling and we expect them to either fall further or remain at the same levels."