India’s ultra thermal plants, designed to run on foreign coal, may no longer afford to do so economically in the future, says a top financial analyst with a leading US-based institute.
This can be seen in the case of India’s two largest thermal power projects in Gujarat’s port town of Mundra Adani Power’s 4.6 GW and Tata Power’s 4 GW plants. Both are no longer competitive owing to nearly doubled price rise of coal from Indonesia since their planning and incapability to hike tariffs, says Tim Buckley, Director of Energy Finance Studies Australasia with the Institute for Energy Economics and Financial Analysis (IEEFA).
Adanis’ Mundra plant has previously been disclosed to be operating with 100 per cent imported coal from Indonesia while Adani Power has been operating at a net loss, and has been doing so for the last seven years, Buckley told IANS in an email interview.
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