NTPC is looking for long-term contracts for sourcing coal. This is to ensure that the company has secure fuel supplies for its projects as well as protect itself from volatility in pricing.
The company has massive capacity addition plans and will add 4,320 MW capacity this financial year. In 2010-11, NTPC had added 2,490 MW.
To meet its current requirements, the company had floated a tender in November for importing 4 million tonnes of coal in 2011-12. The bids are under evaluation, a company official said.
Costlier Coal
Currently, 90 per cent of the company's fuel requirement is met domestically via its long-term contract with Coal India. The remaining 10-15 per cent NTPC meets through imported coal, which is also expensive. NTPC's annual coal requirement is around 164 million tonnes.
Incidentally, effective January 1, even domestic coal has become expensive, with Coal India switching over from the existing useful heat value (UHV) based coal grading system to gross calorific value (GCV) based grading system.
Though the GCV-based coal pricing system is in sync with international practice, but it also means increase in fuel cost proportionately.
QUARTER RESULTS
Increase in input costs (coal prices) has made a dent into the company's profitability in the third quarter of the current fiscal. It reported a 10 per cent drop in net profit at Rs 2,130.39 crore.
NTPC's installed power generating capacity at present is 36,014 MW.
INTERIM DIVIDEND
The board of directors has recommended an interim dividend for the year 2011-12 at the rate of 35 per cent of paid-up equity share capital being Rs. 3.50 per equity share.