Power firms to miss coal import target of 20 MT

Power utilities, including National Thermal Power Corporation (NTPC), are set to miss their coal import target of 20 million tonnes this fiscal due to a delay in placement of orders and renegotiation of prices with buyers.

"Power firms have so far been able to import 13 million tonnes and are likely to ship another two million tonnes by the end of the financial year," a top official of Central Electricity Authority said on the sidelines of a function here.

Asked about the implication of power firms not being able to ship the coal quantity envisaged by the power ministry, he said that this would affect the desired stock levels, which at present was for seven days.

With coal stocks depleting at most of the power plants, the ministry had asked its utilities to ship 20 million tonnes of the dry fuel by March 2009. Of this, Navratna PSU NTPC was to import 8.2 million tonnes, but has so far been able to ship only about two million tonnes into the country.

"First, there was a delay in placement of orders by power companies and then the fluctuation in coal prices forced them to re-negotiate the rates, causing further delays," a power ministry official said.

Many of the coal-based plants of NTPC are reeling under acute fuel shortage, affecting its power generation and resulting in an estimated loss of Rs 90 crore so far.

Despite witnessing a fall in its coal stock levels, NTPC, along with other power companies, has locked horns with Coal India Limited over signing of a fuel supply agreement for assured supply of coal.

While NTPC wants an assured commitment for supply of 90 per cent of its coal requirement, Coal India intends to fix the “trigger level” at 75 per cent.

The matter is likely to be resolved by the end of next month, sources said, adding that a "compromise formula" is being worked out between the two Navratna PSUs.