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UMPP’s to rely on imported coal

New Ultra Mega Power Projects will get sanction provide their coal linkage is from imported coal. Indian coal reserves estimated at 250 billion tonnes may last only upto few decades at current consumption levels. Further, small and medium power projects rely on domestic coal and they cannot afford to use imported coal. Whereas, UMPP’s if located near the cost, can achieve economies of scale and can use imported coal. So, future UMPP’s are most likely to come up near coast. Cheyyur in TN, Kotipalli in Andhra Pradesh both projects are proposed on imported coal. Currently, around 40 thermal plants in the country are reporting critical stocks.

Gujarat NRE Coke plans expansion by two greenfield plants

Gujarat NRE Coke Ltd is planning to set up two green field plants one in Gujarat and another one in Andhra Pradesh with an investment of Rs. 1500 to Rs.2000 million. The coke plants will have a capacity of 1 mtpa. It may be noted, the company’s current expansion programme at its Dharwad plant is nearing completion. The demand for coke is always high even in recession.

NTPC plans to acquire coal assets abroad on its own

NTPC has identified some 2-3 properties, one or two in Mozambique and one in Indonesia, all of which are in the due diligence stage. With requirements of 145-150 million tonnes of coal this year, it gets coal from Coal India and Singareni Colleries and yet it has to import around 20 million tonnes of coal. So securing coal will help the company to bolster its expansion plans. It has also recently, signed a 20 year long FSA with an option to review the terms every five years.

Coal Ministry cancels coal linkages of 25 power projects

In a bid to check the hoarding of coal reserves by private power developers, the government has approved the cancellation of coal linkages of 25 captive power projects. These projects — which have a total generation capacity of 1,292 Mw and require around 6 million tonnes of coal annually — failed to set up power plants even while they were accorded coal linkages years ago.

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