Tangedco to import coal to meet shortage

CHENNAI: Tangedco is set to resume coal imports, with the first shipment expected on October 10, as domestic coal supply has not improved in the last few weeks. While the discom was planning to import coal only from October-end, the unrelenting power demand and supply constraints of domestic coal have forced it to start importing earlier, Tangedco chairman Vikram Kapur told TOI.
Though the Centre promised to provide 16 rakes to move coal from the mines, in the last few days, only 11 rakes have come.Due to this there has not been much improvement in average buffer stock, which now is only for three days. The discom was importing coal from last December as the Centre was not able to meet Tangedco’s coal demand. The import was stopped during wind power season and now it will restart.
Though it is Septemberend, the power demand has not come down and the average demand is around 14,500MW compared to last year when the demand was only 12,500MW. Wind power generation has more or less stopped and Tangedco is completely dependent on purchasing power from private sources. Tangedco will be importing coal mostly from Indonesia, but it is also looking at other countries. Import of coal will hit Tangedco’s financials as the international coal price has increased in recent times, even as the value of rupee depreciated against the US dollar.
In the first phase, 1.5 lakh tonnes of coal will arrive at the Ennore port, which will be used by North Chennai and Mettur units. Six lakh tonnes of coal will be imported through Tuticorin for the Tuticorin thermal unit.
“We were previously importing at $73 per tonne and we are trying to procure it at the same cost. But as we have to pay in dollar terms and with the depreciation of rupee against the dollar, we are expecting the cost of coal to increase. Along with this Tangedco has implemented the pay commission wages for its employees and together all these will hit our financials,” said Kapur.