Imported, domestic coal supply swap in the works to cut costs


Imported, domestic coal supply swap in the works to cut costs

The Centre is considering a proposal to encourage power plants in remote areas to mostly use domestic coal while allowing plants closer to ports to use imported coal, interchanging their current sources of fuel to reduce cost of transporting coal. Such a move would lower cost of power generation and, subsequently, the consumer’s bill.

At present, some power plants located in the hinterland consume imported coal and have to spend additional money in transporting the fuel from the ports. Similarly, some plants in the coastal regions have a high transportation bill as they have to source coal from pitheads which are mostly located in eastern India.

Interchanging the type of coal will help bridge the gap between coal requirement and availability, thus reducing transport cost and crisscross movement on rail network. Read More

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