Sunday 26 May 2013

Shortage Of Thermal Coal In India Provides Opportunities

Thermal coal prices have been on the wane but India is relying on imports to bring coal supplies to power deprived regions of the country.



Delays in federal approvals for mines in Inida have meant that power plants of coal supplies and keeping almost 400 million in India without electricity.



According to the Central Electricity Authority, more than 33 power plants in the country, with a total generation capacity of 31,320 megawatts, had coal stocks of less than seven days as of May 21. Stocks of less than 15 days are considered critical.



Power producers in India are relying on imports of the fuel to bridge a shortfall in shipments from Coal India Ltd., the nation’s monopoly supplier.



Grade of domestic coal is also an issue, declining international prices are also encouraging Indian power producers to import coal.



NTPC Ltd., Asia’s second-biggest power utility by value, will almost double purchases of coal from outside India this fiscal year to curb fuel shortages at its plants.



NTPC has placed an order for 7 million tonnes of imports of thermal coal and set to import another 10 million tonnes in two phases during the year.


Source:-www.proactiveinvestors.com.au





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