International BusinessNTPC looking for long term contracts for coal import
State run power firm NTPC today said it is looking for long-term supply of coal from overseas market to meet the requirements of its local plants.
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"We would like long term contract for importing thermal coal from the next year. (Then) we could be assured of more quantity of coal at discounted price rather than importing it every year," NTPC Chairman R S Sharma told reporters on the sidelines of ICC India Energy Summit here.
He said long term contract with international suppliers would give "reliability, security and price benefit".
The contracts could be of two to three years with international coal companies and would replace the existing tender route, he said.
India mainly imports coal from Indonesia and Australia as the imported commodity has better calorific value.
This financial year NTPC plans to import 12.5 million tonnes of coal, of which about 3.5 million tonnes have already been wheeled in. The company would import more than 12.5 million tonnes next fiscal.
On the proposal to increase price of gas produced by ONGC by 30 per cent, Sharma said the move would have no impact on firms like NTPC.
Gas is used as feedstock in gas-based power plants of the company and as per regulation the fuel cost is passed on by electricity producers to the final customers.
"It will have no impact on the consumers," he said.