Coal India offers 5 mt coal to NTPC on credit

30-Oct-2018

Coal India has decided to offer an extra 5 million tonnes of coal to NTPC. It can be moved by road without paying any advances the company said in a statement on Monday. The decision has been taken to help NTPC curtail costly coal imports by NTPC.

“This will help NTPC boost power generation and build coal stock at its power stations. As against the normal supply term of ‘cash and carry’, the release of 5 million tonnes against this offer shall be made on credit basis without insisting for any advance payment and NTPC is to make payment after receipt of invoices. CIL has requested NTPC to immediately contact its subsidiaries to avail the benefit of this offer and to lift the coal within 30 days of release,” the company said in a statement.

Earlier in September, Coal India offered domestic coal to central and state power utilities as well as independent power plants, with the condition that they reduce import by proportionate quantities. Against this offer power producers opted to procure 7.94 lakh tonnes of coal per month from Coal India.

South Eastern Coalfields, the largest Coal India subsidiary, has offered to supply about 30% more coal than stipulated in the fuel supply agreement. This coal can be lifted by power producers through road and road-cum-rail modes.

Coal India claims that by prioritising supplies to power stations in East ensured enough generation to meet increased power demand during the just concluded Durga Puja festivals. Coal supplies to power sector dipped to 1.169 million tonnes per day during September due to rains and impact of cyclone Titli on coal production. It has now increased to 1.306 million tonnes per day during October.

With rains receding, Coal India is taking measures to ramp up coal production and raise supplies from November, 2018 onwards to meet requirements of power and non-power sectors.

Source: THE ECONOMIC TIMES