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Saturday, 06 August 11
NTPC IS CONSIDERING TO ENTER INTO 25 YEARS COAL PURCHASE AGREEMENT


Indian, State-run power producer NTPC's present annual consumption is 164 million tonnes, and company is considering long-term agreements abroad to secure coal supply, reports say.

NTPC also joint with other Indian utilities to hunt coal mines in abroad to secure fuel on long term.  However, NTPC in opined that, return on capital and investment/appreciation in coal mines are very difficult to know in advance. 

We don't know how it will behave. It is very speculative. Long-term deals provide you an assured amount of coal at a predetermined prices," said CMD Arup Roy Choudhury as quoated by Business Standard of India.

Adding: “We will give priority to domestic coal but to bridge the gap, we are looking at acquisitions of mines abroad and may enter into 25-year agreements for supply.

”Company will soon call final price bids for direct import of four mt. “After this is finalised, we will decide on the feasibility of long term agreements,” he added.

NTPC’s current capacity is 34,000 Mw. It plans to add 5,000 Mw by the end of 2011-12. For the 12th five-year plan (2012-17), it has planned to add 25,000-35000 Mw capacity as reported by Business Standard.



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