Gandhinagar, 30 September 2014

We earlier reported that Union Power ministry had accepted Gujarat state’s long pending demand before centre to permit National Thermal Power Corporation(NTPC)-Gujarat State Power Corporation(GSPC) coal swapping. Formal MoU in this regard are going to be signed today in capital Gandhinagar.

The Ministry of Power has permitted state-run NTPC to swap imported coal it receives through Gujarat for its thermal plant in Chhattisgarh with the fuel available at Bilaspur mines. In turn, the state can utilise the imported coal for its power plants. Being closer to the sea, Gujarat can save freight cost for sourcing coal from domestic mines, and consume imported coal for its thermal plants.

Power and Coal Minister Piyush Goyal has approved this arrangement proposed by the state. Country’s largest power producer NTPC operates 2 projects — Korba (2,600 MW) and Sipat (2,980 MW) — in Chhattisgarh. The total coal requirement of NTPC is estimated to be 177 million tonnes, of which the company will import 17 MT. During 2013-14, NTPC consumed 158.57 MT coal, with imports accounting for 10.39 MT. Chhattisgarh has 16 per cent of the total coal deposits of India. The 12 coalfields, in the districts of Raigarh, Surguja, Koriya and Korba, have estimated reserves of 44,483 MT. Most of the coal deposits are of power grade coal. The total installed power capacity of Gujarat is 27,647 MW.

Gujarat government had also asked the central government to deliberate on the issue of coal quality, pricing of coal and freight cost during the meeting represented by minister Saurabh Patel in June.