Adani Bags NTPC’s Coal Supply Tender As Govt Acts To Avoid Power Crisis
Adani Enterprises will deliver 1 million tonnes of coal to NTPC, which in October issued its first tender for coal imports in more than two years, according to Bloomberg report
New Delhi: Adani, one of India’s largest coal producer, has won a contract to supply overseas coal to state-run NTPC as the country aims to avoid a repeat of last year’s energy crisis, according to sources familiar with the matter told news agency Bloomberg.
Quoting sources, Bloomberg said that Adani Enterprises will deliver 1 million tonnes of coal to NTPC, which in October issued its first tender for coal imports in more than two years.
Damodar Valley Corporation, a Kolkata-based state-owned power generator, is also examining a proposal from Adani for the supply of the same volume of coal to its power plants, the sources said.
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However, Adani, NTPC, and DVC didn’t respond to requests seeking comment.
The country’s power generators are under pressure to bolster coal stockpiles after supply disruptions and rising demand left the country grappling with shortages in the second half of 2021, leading to outages in some provinces and restrictions on energy-hungry industries.
The decision to purchase coal from overseas comes despite the government’s commitment to reduce reliance on fuel imports.
Coal accounts for about 70 per cent of India’s electricity generation, and consumption is forecast to rise in the next few years, even as Prime Minister Narendra Modi makes a huge push to add renewables.
Adani last month began shipping the first export cargo from its controversial Carmichael coal mine in Australia. The shipment is headed to India, one of the sources familiar with the development said, without giving details of buyers.
Benchmark seaborne coal prices hit a record in October though have since pared those gains, helping to boost the case for imports.
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