Coal India has offered an additional 5 million tonnes of coal to thermal power generator NTPC on a credit basis to boost low stock at its generating units.

This means that against the normal supply term of cash and carry where the generator has to pay upfront at the time of sourcing coal, the release of this additional 5 million tonnes will be on credit without insisting on any advance payment, Coal India officials said.

NTPC will have to lift the coal by road and pay after the receipt of invoices.

The annual requirement of coal for the thermal power units of NTPC is estimated at around 200 million tonnes.

“Coal India has requested NTPC to immediately contact its subsidiaries to get the benefit of this offer and lift the coal within 30 days of release,” said a Coal India official.

Data from the Central Electricity Authority show that as on October 21, several NTPC units in different parts of the country had scanty stocks, raising concerns over generation amid the adverse effects of rain on mining.

Earlier, in September, CIL had offered domestic coal to central and state power utilities and independent power plants on the condition that they stop importing in proportionate quantities.

South Eastern Coalfields Ltd (SECL), which meets a considerable requirement of the power sector, has offered to supply coal even beyond the trigger level of 75 per cent of the contracted quantities under the fuel supply agreement.

SECL has also offered supply of the balance 25 per cent of the contracted quantities to the power generators, which can be lifted by them through road and road-cum-rail modes.

The decision to raise coal supply comes at a time the government has asked Coal India and its subsidiaries to prioritise offtake by power producers such as NTPC and select central and state-owned generating companies to help rebuild their coal stock.

The decision also comes in the wake of rising coal imports, which in the month of September stood at 21.1 million tonnes against 15.61 million tonnes in the corresponding month of the previous fiscal.

Coal India has also stepped up supply to the power stations of eastern states.

Coal supplies to the power sector, which had dipped to 1.169 million tonnes per day during September because of rains and the impact of cyclonic storm Titli on production, have increased to the level of 1.306 million tonnes per day during October, despite the Puja festivities.

The Telegraph