State-run NTPC will ramp up coal production from captive mines to 34 million tonnes in FY24 and transport around 9 mt of the dry fuel through coastal shipping as India enters the peak consuming season in April with demand likely to hit around 230 GW.
India’s power demand is likely to grow by 6-7 per cent Y-o-Y in FY24 and the government has put in place a multi-pronged strategy, including importing 6 per cent coal for blending and fast-tracking commercial coal mine auctions, to ensure adequate reserves at thermal power plants (TPPs).
The country’s largest power generator has also put in place strategies to meet the higher demand for electricity, including ramping up production from captive mines and using Rail-Sea-Rail (RSR) mode for transporting the critical commodity, sources said.
Coal-based generation accounts for more than 71 per cent of the generator’s total installed capacity of 71.6 GW. The Maharatna company consumed 227 mt of coal in FY22, while during FY21 and FY20, its consumption was 195.4 mt and 187.5 mt, respectively. It has an average of 15 days of coal currently.
Coastal shipping
NTPC has floated tenders for supplying coal to four TPPs at Kudagi (Karnataka), Dadri (Uttar Pradesh), Jhajjar (Haryana) and Unchahar (Uttar Pradesh).
Sources said the total quantity to be transported from coal blocks including Mahanadi Coalfields (MCL) and South Eastern Coalfields (SECL) to these TPPs is around 9 mt. It will take around 5-6 days to transfer coal from MCL blocks to the Dadri plant.
“Kudagi is moving through Goa. For Dadri, Unchahar and Jhajjar coal can be supplied through Dahej or Kandla or Mundra. On the east coast, supply will be through Paradip and Dhamra ports and for the west coast, it will be through Mundra, Dahej and Kandla,” one of the sources said.
When asked about the high cost of transporting coal through RSR mode compared to rail, the source explained that RSR mode is cheaper than imported coal.
“The difference per unit for power produced exclusively from RSR coal and imported coal is around Rs 1.5-2 per unit,” he added.
At present, six rakes per day are being moved through the RSR mode, which is around 1.4 million tonnes (MT) per rake per year. It is going to NTPC’s Kudagi thermal power station (TPS).
Captive mines
The PSU plans to increase coal output from captives by 46 per cent Y-o-Y to 34 mt in FY24. Its mines produced 23.2 mt of coal in FY23 and 14.02 mtin FY22. At present, NTPC has four operational mines—Pakri-Barwadih (Jharkhand), Chatti Bariatu (Jharkhand), Dulanga (Odisha) and Talaipalli (Chhattisgarh).
The extended spring season in March aided TPPs in building adequate stocks at plant heads for April as power demand was stable. Even during the first week of April, the temperatures were in the moderate range. However, since April 11, the temperatures have been rising thereby accelerating demand.
During April 10, the maximum demand met stood at 194.5 GW, which rose to 198 GW a day later and then to 200 GW and 203.5 GW on April 12 and April 13, respectively.