Jobaaj Stories
June 2022: India's largest state-owned thermal power generating company, NTPC had invited tenders to procure 4.53 MT coal for blending with domestic dry fuel in thermal plants due to the shortage in the plants in the month of March 2022.
In response, the company has received bids from 4 players namely,
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Ahmedabad-based Adi Tradelink, Chennai-based Chettinad Logistics, and Delhi-based Mohit Minerals, along with Adani Enterprises.
Finally, NTPC has awarded multiple contracts to import 6.25 million tonnes of coal to Adani Enterprises at a cumulative value of Rs 6,585 crore.
The GenCo has taken this step in order to meet the recent directive of the Union power ministry to blend 10 percent imported coal in order to tackle the domestic coal shortage. It has been mandated as per the directive to meet the demand of 20 MT over the year 2022-23.
Higher imports could put further pressure on state-government-owned power distribution companies, which are already saddled with debt and owe billions of dollars to generators as they have historically absorbed higher input costs to keep tariffs steady. It is further estimated that the NTPC's tariff rate is to increase by 60-70 paisa per unit, which is ultimately borne by the consumers.
It is also worth noting that, NTPC has a coal-based installed capacity of 48,120 MW and owns over 23 coal-based power stations.
-by Gautam
This news piece is brought to you in association with jobaaj.com
