NTPC to get coal linkage for 11k mw this month

NTPC, the country’s largest power producer, will tie up coal linkages for nearly half its planned capacity addition beyond the 12th Plan period before the end of this month.

At the end of the 11th Plan, which ended in March this year, NTPC’s total generating capacity stood at 37,014 mw.

It plans to add 14,038 mw — including 2,160 mw commissioned since March — during the 12th Plan, which ends in 2017. This includes 2,890 mw through joint ventures and subsidiaries.

Beyond the 12th Plan, i.e. in the years starting April 2017, the state-owned company plans to add around 25,000 mw.

Of this capacity addition planned, feasibility reports for 12,111 mw have already been approved, while preparation of reports for about 13,000 mw has been taken up.

NTPC has already tied up supplies for its capacities coming on stream during the 12th Plan period.

Now, it is set to tie up coal linkages for around 11,000 mw capacity that is to come up after 2017. Going by officials of Coal India and NTPC, the two companies have reached an agreement to this effect and the supplies would be tied up before the end of August.

NTPC buys coal under long-term supply agreements with subsidiaries of Coal India and with Singareni Collieries Company.

It has such pacts, having validity of 20 years, in place for all units commissioned before March 2009. The annual quantity contracted under these agreements signed is 124.90 million tonne (mt).

For units commissioned after March 2009, coal is being supplied under a memorandum of understanding, which would now be formalised under Coal India’s revised fuel supply agreements but are yet to be approved by the latter’s board.

In the meeting of the Standard Linkage Committee (Long Term), a Letter of Assurance was issued for about 0.4 mt coal supply to NTPC’s 500 mw plant at Bongaigaon.

Based on information provided by NTPC to the power ministry, the following plants are expected to get commissioned during the current fiscal, involving a total coal linkage of 10.65 mt: the 1,000 mw Vindhyachal plant requiring 3.19 mt, 1,000 mw Rihand plant (3.36 mt), 500 mw Jhajjar plant (2.30 mt) and 500 mw Vallur plant (Unit 2) being built as a joint venture with Tamil Nadu state power utility (1.83 mt).

Projects to be commissioned during 2013-14, requiring 7.73 mt coal linkage, are Vallur (unit 3) requiring another 1.83 mt, Sipat unit 3 of 660 mw (3.05 mt), Muzaffarpur unit 1 of 195 mw (0.66 mt), 250 mw capacity at Nabinagar’s unit 1 (1.25 mt), Bongaigaon Unit 1 of 250 mw (0.97 mt).

For 2014-15, NTPC has tied up 10.76 mt coal for 2,355 mw capacity and for 2015-16, 4.3 mt for 910 mw.

Last fiscal, its thermal stations had consumed 141.13 mt of coal, of which 11.89 mt was imported.