The Hindu Business Line : NTPC eyes coal imports from Indonesia

New Delhi, July 15 NTPC Ltd is eyeing imports up to 2 million tonnes of high-grade coal annually from Indonesia and also looking at the possibility of picking up stakes in coal assets in that country to secure firm supply arrangements.

This comes close on the heels of Tata Power Company’s acquisition of a 30-per cent equity stakes in major Indonesian thermal coal producers, PT Kaltim Prima Coal and PT Arutmin Indonesia, which entitles it to purchase about 10.1 million tonnes of coal every year till 2021.

Besides Indonesia, NTPC is also scouting for coal blocks in Australia and South Africa.

The proposed overseas foray for coal assets is part of its strategy to produce around 50 million tonnes of coal by 2017, Government officials involved in the exercise said.

The company had earlier deputed three high-level teams to Indonesia, South Africa and Australia to hunt for opportunities for investing in coal assets in these countries.

At present, NTPC has been resorting to importing coal from mainly Australia to tide over fuel shortages experienced at its coal-based stations during much of the last fiscal.

The company, which has already begun aggressively pitching for coal blocks in the country, is now looking at bagging blocks abroad to diversify supply risks and also since foreign coal mines produce superior coking coal with higher calorific value and lower ash content compared to the coal produced here, officials said.

Besides domestic requirements, NTPC, which has signed an agreement to build a 500-MW coal-fired power plant in Sri Lanka, plans to divert a substantial portion of the potential coal imports from Indonesia to fire that project.

Around 2.5 million tonnes would be required annually to fire the Trincomalee plant, which will be entirely based on imported coal.

On the domestic front, NTPC has lined up investments of around Rs 6,000 crore for developing its 15-million tonnes per annum Pakri Barwadih captive mine — the first of a series of eight mining blocks allotted to power major.

The company is hopeful of starting coal production from the mine by around May 2008, NTPC officials said.

Besides this, the company has bagged seven blocks, including two to be operated through a 50:50 joint venture with Coal India Ltd.

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