Coal India to supply blended fuel for import substitution at thermal plants.

KOLKATA: Coal India is tweaking its longterm forward e-auction calendar to supply a mix of coal with high-energy and lowenergy content simultaneously. The two categories, when blended in a 30:70 ratio, can readily substitute the fuel requirements of import-based thermal power plants located in coastal regions.

"We are looking at the import substitute market and are planning our e-auction schedules accordingly," a senior Coal India official said.

The move would help companies in coastal areas save on foreign exchange and reduce coal imports which is now witnessing a substantial price rise following supply cuts in the global market. It would also re duce the cost of power generation.

"Coastal thermal power plants are built to take 30% high-energy content and 70% high-ash low-energy content coal. We would be supplying them exactly the same," the official said.

"At today's international prices, a 70:30 mix of low energy with high energy -both Indian -will be cheaper even if we supply it to ports at Krishnapatnam," another Coal India official said.

"We will supply low-energy content coal as well as high energy content coal through long-term e-auctions. It will allow users to get assured supply of the mixed volume of coal for a year with the ability to pick up the coal whenever needed," he said.

The plans involve supplying high-grade coal from the Ranigunj mines of Eastern Coalfields, and lower-grade fuel from Tal cher's Ib Valley. Both grades of coal would be supplied either at the Krishnapatnam, Paradip or Dhamra port, where these would be blended. The blended product would be transported to power plants through waterways.

"Port authorities have agreed on providing space for blending the coal," the official said.

In a recent meeting between the railways, port authorities and thermal power companies, it has been decided that the coal can be mixed at ports from where consumers can take deliveries through either inland water ways or the sea route.

"Some sort of incentive to make inland and coastal sea movement economical could go a long way in helping companies sources import substitute coal," said an analyst.

Source : energy.economictimes.indiatimes.com