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Tangedco gets centre’s nod to import 5 lakh tonnes of coal from Indonesia

As per the Fuel Supply Agreement, we will receive 60,000 tonnes of coal. But, with a surge in coal demand nationwide, Tangedco finds itself receiving only 40,000 tonnes from Odisha.

CHENNAI: In a bid to meet power demand in the next summer, Tangedco has secured approval from the union government to import 5 lakh tonnes of coal from Indonesia by March. The state-owned power utility is expected to initiate the tender process by the end of November.

A senior Tangedco official told TNIE, “To fuel our existing thermal power stations with a combined capacity of 4,320 MW, we currently source coal from Talcher and IB Valley mines of Mahanadhi Coal fields in Odisha, as well as Singareni mines in Telangana.

As per the Fuel Supply Agreement, we will receive 60,000 tonnes of coal. But, with a surge in coal demand nationwide, Tangedco finds itself receiving only 40,000 tonnes from Odisha. Apart from this, with Lok Sabha elections happening next year, it would be a tough task to get coal. Consequently, the union government has granted approval for the import of 6% of the required coal. Tamil Nadu has been procuring coal from Indonesia for summer needs in recent years, addressing the growing demand.”

Another official highlighted pricing dynamics, saying, “During this summer, Tangedco procured coal at $136 per tonne when global demand was at its peak, exacerbated by the Russia-Ukraine war. However,  we anticipate the price to drop below $120 a tonne.” According to a report by the Southern Region Power Committee, Tamil Nadu’s power demand is projected to reach 18,000 MW during February and March next, surpassing a daily average of 15,000 MW. On April 20, the power demand peaked at 19,347 MW. Officials anticipate it be higher during April or May next.