Cesc In Coal Supply Parleys With Overseas Companies

CESC Ltd is negotiating with a host of international companies for importing coal to feed its 500 mw thermal power station at Budge Budge. The RPG power utility hopes that it will be economical to burn imported coal in the long run. Australia, Indonesia and South Africa could be the most favoured sources of the coal. Companies that are in the picture, include, Shell International and Broken Hill Properties.

Shell International may float a consortium to source the coal. Incidentally, the company has its own leased mines in Australia.

All the companies have offered credit facilities of as much as 180 days. This is in sharp contrast to buying of coal from Coal India Limited with advance payment only. The Australian, Indonesian or South African coal are highly volatile and it has to be found out if the two Budge Budge boilers of 250 mw each are technically competent to burn this coal.

 

The price of the coal will depend on the therm value at the point of delivery. The general complaint against CIL is that its coal quality is not only unpredictable, but, the consumer has to often accept `D' grade coal after paying for the grade 'B'.

Though the imported coal now carries import duty, the process of liberalisation is expected to see either the duty go altogether or be brought to a very low level. In another two years, the imported coal price will become more competitive in relation to the Indian coal.

However, the idea is still on an experimental basis as the foreign coal will have to undergo a number of trans-shipments as the low draught at the river Hooghly will allow only small vessels to bring the coal. CESC will shortly go for a dry run. In stead of the imported coal, it will experiment with bringing the coal in barges from the Mahanadi Coalfields, a CIL subsidiary.

The coal will first travel by rail from Mahanadi mines to the Haldia port from where it will be put on barges.

But, the Budge Budge jetty on the river does not have adequate draught even to allow coal barges of medium capacity. The river bed is being dredged and de-silted to improve navigability.

The barges carrying 200 to 500 tonnes of coal need 2.5 meter draught. It may require year-long dredging to maintain the draft as the Budge Budge jetty is located at a point where the river has taken a sharp turn.

Bringing coal by barges has assumed immediate importance as the power station is not still linked by a railway track. CESC has been brining coal by hundreds of trucks while the level of generation is about 70 mw in the unit II. But, it is difficult to operate this unit at full load with coal brought by road. Commissioning the second unit will depend on a smooth coal linkage.

In case of the imported coal, Haldia port will be able to handle coal ships with about 25,000 tonnes of cargo. And, this will have to be transported to Budge Budge with small barges with a maximum carrying capacity of 500 tonnes.

In other words, a single coal ship will carry enough coal that will require launching 50 barge trips. And, the entire unloading must be done very fast to avoid unnecessary demurrage. The whole exercise of bringing coal by ships therefore awaits a successful completion of a few experimental trips from Haldia to Calcutta with Mahanadi coal.