NTPC considers import-based coal power plant

India’s largest power producer, NTPC, is considering building a 2.4 GW coal-fired power plant to run entirely on imported coal, Bloomberg has reported. The state-run utility is investigating construction of the plant in Pudimadaka in Andhra Pradesh to take advantage of the fall in global prices for thermal coal and cushion against local shortages of coal.

IThe plan comes as NTPC’s push to mine its own coal suffered a serious setback earlier this month when it cancelled a contract with Leighton Holdings to develop and operate the Pakri Barwadih mine. Meanwhile, state-coal miner Coal India Ltd (CIL) fell almost 20 million t short of its production target for the financial year to March 2014.

IThere has been much speculation that India’s new prime minister, Narendra Modi, will try to break up CIL in an effort to boost domestic coal production and address India’s chronic shortage of the fuel.

Edited from various sources by Jonathan Rowland

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