Tamil Nadu to stop using imported coal for power generation

21 November 2016

Tangedco is all set to stop importing coal for all its thermal units in Tamil Nadu. With the stoppage of import, the discom will save at least INR 400 crore per annum. This follows Centre agreeing to increase the coal allocated to fire Tangedco thermal units.

As of now Tangedco is importing coal from Indonesia.The Centre has agreed to supply the extra coal from Jharkhand coal mines and it will be easy for the discom to evacuate the coal through rail.The Union coal ministry has initiated talks with Railways to allocate extra rakes for Tamil Nadu.

“Totally , every year we need at least 21 million tonnes of coal for Tangedco’s thermal units. Out of this, we get 15 to 16 million tonnes from Coal India Limited (CIL) and the balance is being imported at the rate of $60 per tonne from Indonesia,“ said a senior Tangedco official.

But the tender for importing coal is coming to an end this month. “The tender for importing coal is there up to February but we need to release new tender this month for next year. But the import cost for next year is $90 per tonne. We spoke to the Union coal minister Piyush Goyal a few weeks ago in New Delhi. Based on this the Centre has agreed to allocate more coal to Tangedco,“ said the official.

“Mostly, Tangedco will be getting coal from Singareni. If it is from Singareni than it is only through road and rail and it will directly go to Mettur. In a few days we will be signing a MoU with the coal ministry and after that we will be getting local coal for all our units,“ he said.

The Centre has also agreed to increase coal allocation to Tangedco for the new thermal projects too.“We thought we will have to import coal for the new thermal projects in Uppur and North Chennai units. But, with the Centre’s help, we decided not to go for the new tender at all,“ he said.

There was a concern over the quality of coal from western coal mines near Nagpur in Maharashtra. “The Centre agreed to allocate coal from western coal mines instead of Ib Valley in Odisha. But, as in Ib Valley , the quality from western coal mines is poor.Due to this we asked Centre to ship coal from Jharkhand or Singareni, which has been accepted,“ the official said.

Source – ET