APGenco has begun efforts to secure coal requirements for its expansion projects from two blocks awarded to the State-owned AP Mineral Development Corporation in Orissa and Madhya Pradesh.

In addition, it is banking on increased supply from Coal India Ltd and bridging the gap through imported coal.

The State-owned power generation company, whose annual requirement is 28 million tonnes now, has arrangement for coal supplies from Singareni Collieries Company Ltd and Mahanadi Coalfields Ltd at 12.24 MT and 12.5 MT, respectively. This results in a gap of about 4 MT per annum.

The power utility bridges this gap by importing coal through long term contracts awarded under tender process.

The Managing Director of APGenco, Mr K. Vijayanand, earlier this the week said the corporation is banking on the directive of the Government to Coal India Ltd, to ensure 80 per cent supplies for power plants. “This will ease up our overall coal demand-supply mismatch and improve productivity,” he said.

Speaking about the corporation's strategy to secure coal supplies, Mr Vijayanand said SCCL has been generous in terms of coal supplies. They have supplied nearly 6 MT more than what was expected from them during 2011-12. However, it has been below expected levels from MCL last year. “We have made arrangements with the State Government and APMDC. The two blocks awarded to APMDC would be ready by the time we commission new projects and help us meet the requirement,” he said.

Coal import

Last fiscal, APGenco imported 1.6 MT of coal, which was equivalent to 2.88 MT of indigenous coal. This was due to higher calorific vale.

Mr Vijayanand said the imported coal procurement price of APGenco was amongst the lowest at Rs 5,640 a tonne, against Rs 7,335 of NTPC, Rs 6,180 of Tamil Nadu Generation Corporation, Rs 5,831 of Karnataka Power Corporation, Mahagenco, and West Bengal utility.

The coal from APMDC mines will be ready for production coinciding with the commissioning of plants in 2013, he said.

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