The Hindu Business Line : NTPC aims for second spot in coal production

NTPC’s coal consumption is expected to surge to 185-200 million tonnes annually by the year 2017, up from 112 mt at present. The power major plans to meet up to 25 per cent of its total coal requirement from its own production over the next ten years.

According to company officials, NTPC, which has already been allocated eight domestic coal mining blocks, is looking to invest in either Indonesian or Australian coal mines by as early as next year. All options are being actively considered, including acquisition of equity stakes in overseas mines, they said. NTPC is currently buying most of its coal from Indonesia to tide over the domestic supply deficit.

“NTPC’s entry into coal mining has been driven by strategic emphasis on ensuring fuel security and deriving economy and stability of pricing. We hope to set new benchmarks of efficiency and productivity in coal mining to lower final cost of power to the consumer through the forward and backward linkages across the business,” the official said.

Of the eight domestic mining blocks bagged by the company, two would be developed in partnership with CIL. In case of the first mining block — Pakri Barwadih — it has completed preparatory works and steps are being taken to commence coal production at the site by end of 2007.

NTPC, which produces 27 per cent of the country’s total electricity generation, plans to almost double its generating capacity to 50,000 MW by 2012, from the current 27,904 MW. NTPC operates 18 coal-fired projects with a cumulative capacity of 23,209 MW, while its remaining capacity operates on gas and liquid fuel.

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