Coal India is making slow but steady progress on thermal coal imports. Industry sources suggest that the company is now aiming to supply imported coal to the power sector in early 2011.
The coal major has already received letter of intents (LoI) from NTPC (4 mt), Damodar Valley Corporation (0.8 mt) and others for importing approximately 6 million tonnes (mt) of thermal coal during the fiscal.
Imported coal is used by power producers, partly to bridge the domestic demand-supply gap and partly for blending with the domestic coal to meet the emission-control norms.
According to Plan projections, India may require 35 mt of imported thermal coal this fiscal. Of this, over 13 mt will be consumed by the country's largest power producer, NTPC.
To meet the demand, CIL has adopted a two-pronged strategy that presupposes direct buying in the open market overseas as well as long-term supply contracts (through strategic alliances) at prices lower than the open market price.
more at : http://www.thehindubusinessline.com/2010/08/25/stories/2010082550850300.htm
Tuesday, August 24, 2010
Subscribe to:
Post Comments (Atom)
No comments:
Post a Comment