Coal India ties up with APGenco

Our Bureau Kolkata | Updated on January 16, 2018 Published on October 13, 2016

To substitute imported fuel by Ranigunj coal

Coal India has tied up with Andhra Pradesh Generation Company (APGenco) for substituting imported fuel, used for blending purposes, by high quality Ranigunj coal. The initiative is part of the CIL’s effort to market Ranigunj coal that has few takers.

APGenco procures 5 million tonnes low quality (4100 kilo calorie) fuel from CIL subsidiary, Mahanadi Coalfields in Odisha for its super-critical 2X800 MW power station at Krishnapatnam. The additional fuel requirement is met through imports.

As per the new plan, it will procure an additional 1 mt fuel of high energy value (6100 kcal) and low ash Ranigunj coal produced by another CIL arm, Eastern Coalfields, replacing the import demand. The State-owned miner has already entered into such arrangements with NTPC and Maharashtra Generation Company (Mahagenco). According to CIL sources, the deal is a win-win to the generation companies as they get the desired fuel at lower than import price.

Decline in sales

After nearly two decades, CIL witnessed a decline in coal sales in the first half of this fiscal. According to the company, sales were down 0.9 per cent compared to last year in April-September. Production, however, is flat indicating piling up of pit-head inventory.

Coal sales were particularly under pressure over the last two months due to arrival of increased quantities of cheap hydro-electricity and distress sale of thermal power by stressed imported coal-based private sector generators, especially in Andhra Pradesh. The situation hasn’t change much in October as hydro-electricity supply is up by 35 per cent in the first week, compared to the same period last year.

Published on October 13, 2016

A letter from the Editor

Dear Readers,

The coronavirus crisis has changed the world completely in the last few months. All of us have been locked into our homes, economic activity has come to a near standstill. Everyone has been impacted.

Including your favourite business and financial newspaper. Our printing and distribution chains have been severely disrupted across the country, leaving readers without access to newspapers. Newspaper delivery agents have also been unable to service their customers because of multiple restrictions.

In these difficult times, we, at BusinessLine have been working continuously every day so that you are informed about all the developments – whether on the pandemic, on policy responses, or the impact on the world of business and finance. Our team has been working round the clock to keep track of developments so that you – the reader – gets accurate information and actionable insights so that you can protect your jobs, businesses, finances and investments.

We are trying our best to ensure the newspaper reaches your hands every day. We have also ensured that even if your paper is not delivered, you can access BusinessLine in the e-paper format – just as it appears in print. Our website and apps too, are updated every minute, so that you can access the information you want anywhere, anytime.

But all this comes at a heavy cost. As you are aware, the lockdowns have wiped out almost all our entire revenue stream. Sustaining our quality journalism has become extremely challenging. That we have managed so far is thanks to your support. I thank all our subscribers – print and digital – for your support.

I appeal to all or readers to help us navigate these challenging times and help sustain one of the truly independent and credible voices in the world of Indian journalism. Doing so is easy. You can help us enormously simply by subscribing to our digital or e-paper editions. We offer several affordable subscription plans for our website, which includes Portfolio, our investment advisory section that offers rich investment advice from our highly qualified, in-house Research Bureau, the only such team in the Indian newspaper industry.

A little help from you can make a huge difference to the cause of quality journalism!

Support Quality Journalism
This article is closed for comments.
Please Email the Editor
You have read 1 out of 3 free articles for this week. For full access, please subscribe and get unlimited access to all sections.