De-stress India’s thermal projects would need supply of 125 million tonne of coal, a challenge in today’s scenario


De-stress India’s thermal projects would need supply of 125 million tonne of coal, a challenge in today’s scenario

Amidst moves to revive stressed thermal assets of 45,000-MW capacity, what has slipped under the radar is the need for coal linkages if the projects are to be made viable. For, it is estimated that, operating at 70% PLF, these plants would annually require in excess of 125 million tonne of coal, with a possible reliance on imports increasing costs and threatening project viability.

The original plan mandated such producers developing captive greenfield mines to meet their coal needs. However, it would now be difficult for the stressed assets to mobilise capital to restart projects and develop coal mines at the same time. “If a resolution for the sector has to be achieved, then a collective solution for fuel supply is needed.

This could entail tasking an independent coal company to finance, develop and supply coal at notified rates to all stressed thermal assets,” says Kameswara Rao, Partner, GRID at PwC India. Read More

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