CESC Ltd will start importing two million tonnes coal a year for 20 years beginning 2014 from the South African mine of Australia-based Resource Generation. The Indian power utility has 10 per cent stake in the asset.
Addressing a press conference here on Friday, the CESC Vice-Chairman, Mr Sanjiv Goenka, said that the company was on the look-out to firm up more supplies from abroad to meet 30 per cent of the requirement for its proposed 2 X 300 MW plant at Haldia in coastal West Bengal.
According to the guidelines issued by the Central Electricity Authority, the coast-based thermal power plants should use a minimum of 30 per cent imported coal.
According to a company release, financial closure for the project has already been achieved; award of all major plant and machineries will be completed by June 2011 and project implementation will begin in “two to three months”.
Captive blocks
In addition to tying up overseas coal supplies, the company is also on the look-out to secure captive blocks in India.
“The Union government has already announced its plan to auction captive coal blocks. As and when it happens we will bid aggressively,” Mr. Goenka said.
In addition, the company has approached Coal India for linkage to its proposed thermal power plant in Orissa. The company is also looking forward to allotment of blocks through West Bengal Government.
On the recent hike in coal prices, Mr Goenka said that the company had approached the regulatory commission for tariff order. The cost of power might go up by 40-50 paise a unit.
Q4 Net rises 12%
Meanwhile CESC reported 12 per cent growth in net profit to Rs 112 crore during the fourth quarter of the last fiscal. Turnover grew by approximately 14 per cent, compared to the corresponding period in the previous fiscal, to Rs, 875 crore. Profits for the entire 2010-11 increased by over 12 per cent to 487 crore.