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Friday, October 28, 2011

MahaGenco to increase steam coal import

Friday, 28 Oct 2011

BS reported that amid rising constraints in the availability of coal from Coal India Limited and its associate companies, state run Maharashtra State Power Generation Company has decided to increase the import of coal.

To start with, MahaGenco, whose plants faced a decline in generation, has floated a tender for the import of 0.2 million tonne of coal.

The company may also consider an additional import of up to 1 million tonne of coal.

MahaGenco, with an installed capacity of 7,500 MW, has a total requirement of 45 million tonne, of which it imports 4 to 5 million tonne.

A MahaGenco official told Business Standard, “We are aware that the supply of coal is expected to become a major issue in the days to come and therefore, we are looking at the possibility of more imports. New plants can absorb more quantity of imported coal, unlike old plants, which have limitations in this regard.”

He, however, added increased coal prices and restrictions imposed by several coal rich countries, including Australia, South Africa, Mozambique and Indonesia, are issues which needed to be considered while deciding to import additional coal.

The official also said domestic coal was priced at Rs 1,600-2,000 per tonne, while imported came at a price of Rs 5,000 per tonne.

(sourced from Business Standard)

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