Coal news and updates

Essar Power expects to spend Rs 1,400 crore this year to import coal from countries such as South Africa , Indonesia, Australia, Mozambique and Russia . The company has developed an indigenous online platform for sourcing imported coal and reduced procurement cost by 7%, its chief executive officer KVB Reddy said. 

 

Essar Power procured more than 3 million tonne (mt) of coal for over Rs 1,100 crore last year through the platform. "This year, we expect to procure about 4mt through the platform, valued in excess of Rs 1,400 crore," Reddy said. 

 

The electronic platform was launched in October by Essar Power arm, Essar Power Gujarat Ltd, which owns the 1,200 MW imported coal-based Salaya power plant in Gujarat's Jamnagar district. The module is capable of evaluating different quality coals from different origins on a single platform, Reddy said. 

 

"We have been able to procure coal with varying heat values and from origins like South Africa, Indonesia, Australia, Mozambique and Russia in an efficient manner. We have been able to cut our procurement cost by almost 7%, which has helped in boosting up the bottom line of the company," he said. 

 

The Salaya plant reported a profit of Rs 35 crore in 2015-16 against a loss of Rs684 crore in the previous fiscal year, primarily due to decreasing international coal prices and higher operational efficiency. Operational costs of the plant are expected to decrease in the next six months as the company expects to operationalise a captive sea water intake plant and an attached coal conveyor belt. 

 

International coal prices are hovering at about $40 per tonne as against over $100 in 2012. Essar Power had earlier said it expects to swing into profits starting this financial year on the back of higher electricity generation capacity and low imported coal prices.

Source: Economic Times