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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.

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