Having realised that the gap between requirement and supply of coal is likely to continue for many more months, the Tamil Nadu Generation and Distribution Corporation (TANGEDCO) has decided to import an additional 3.5 million of coal.
Already, the power utility is importing coal of 1.75 million tonnes through suppliers, who source the fuel mostly from Indonesia.
The need for import has arisen in the light of shortage of domestic coal assuming serious proportions, says a senior official.
Apart from the issue of availability, the Corporation has to deal with the logistics of transportation.
For several months, it had been getting much less the usual 20 rakes, whose capacity is 3,800 tonnes each.
Price factor
After Chief Minister Edappadi K. Palaniswami and Power Minister P. Thangamani took up the issue with the Central government, there has been an improvement in the situation and now, the tally is 16 rakes, says the official.
As for the price of coal that is being imported, the official claims that through e-reverse auction, the Corporation has been able to get it at the rate of $ 67 to $ 69 per tonne, which is cheaper by $ 10 to 12 per tonne, compared to the price in the international market. For 1.75 million tonnes, the utility will be saving around ₹ 140 crore. The total expenditure will be of the order of ₹ 780-₹ 800 crore, says the official, adding that it has been planned to spread the receipt over six to seven months.
On the additional quantity of 3.5 million tonnes, the price has not yet been finalised.
Inexpensive rate
Tangedco is hopeful of securing a rate as inexpensive as the one of the present consignment.
Annually, the power utility, which has power plants of 4,320 megawatt (MW), requires around 21 million tonnes of coal. Under the given circumstances, Coal India will take care of about 16 million tonnes. For the remaining five million tonnes, Tangedco has to look outside the country.