NTPC eyes long-term coal import deals

State-run power producer NTPC is considering long-term agreements abroad to secure coal supply. The company is also looking at acquiring mines abroad.

Its present annual consumption is 164 million tonnes. It will import about 16 mt this year. Last week, NTPC did not make a final bid for Australia’s Bandanna Energy, as it felt the price was too high.

"Return on capital and investment/appreciation in coal mines is very difficult to know in advance. We don't know how it will behave. It is very speculative. Long-term deals provide you an assured amount of coal at a predetermined prices," said CMD Arup Roy Choudhury.

 

Adding: “We will give priority to domestic coal but to bridge the gap, we are looking at acquisitions of mines abroad and may enter into 25-year agreements for supply.”

It will soon call final price bids for direct import of four mt. “After this is finalised, we will decide on the feasibility of long term agreements,” he added.

NTPC also plans to invest about Rs 1 lakh crore over 10 years for setting up a 9,750-Mw hydro power plant in Arunachal Pradesh. "We are talking to the state government for setting up the 9,750 Mw Upper Siang project," Choudhury said. The company is in the process of preparing a detailed project report.

About 1,700 Mw of hydro power capacity is under construction. “The 800 Mw Koldam project at Himachal Pradesh will be operational in the next financial year,” he added.

NTPC’s current capacity is 34,000 Mw. It plans to add 5,000 Mw by the end of 2011-12. For the 12th five-year plan (2012-17), it has planned to add 25,000-35000 Mw capacity.