Power producers waiting for the Fuel Supply Agreement (FSA) with Coal India Ltd have demanded greater clarity on coal import policy to take a call.
“We want greater clarity on the issue of imported coal supply by Coal India,” CESC Managing Director Sumantra Banerjee told PTI when asked about plans to import coal directly or take it from CIL.
He said the issue was complex and discussions were been held on this with the coal miner.
Lanco Infratech deputy CEO Ravi Kapoor said, “Price volatility of imported coal is higher. And, whether that factor is been taken care of in the import policy by CIL has to be seen first. “We will take a call after import policy details are before us,” he said.
NTPC which already imports coal of its own would decide based on the price factor, sources said. CIL assured to supply 80 per cent of coal with 15 per cent import on 85 per cent plant load factor (PLF). The imported coal would be at cost plus basis.
Power companies waiting to sign the FSA with CIL would have to arrange for 17 per cent of coal on their own either through import or e-auction to run their plants at 85 per cent PLF.
“If we consider CIL’s imported coal portion then total imported coal quantity will be close to 30 per cent. Projects were conceived with Indian coal with boilers to handle 40 per cent ash content. Now CIL wants to us to use high calorific value coal. This will create problems,” Banerjee said.
CIL might also offer higher imported coal quantity to coastal power units and more domestic coal to units far from ports to manage logistics issues to meet coal supply contracts.
CIL proposed to use MMTC or State Trading Company to import coal.