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Thursday, 29 October 09
PTC INDIA UNIT CHASES 2.5 MTPA INDONESIAN COAL


Reuters reported that, PTC Energy is in talks with an Indonesian firm to source 2.5 million tonnes per annum (MTPA) coal for its 350-400 MW power tolling arrangements, PTC India's top official said.

"The agreement is now being negotiated...once broad conditions of the agreement are finalised it will be signed," T. N. Thakur, chairman and managing director of PTC India told Reuters from New Delhi over the telephone on Thursday.

PTC Energy, a unit of power trader PTC India, may sign a contract to source 2.5 MTPA coal for a 10-year-term any time now, Thakur said.

He did not disclose the Indonesian firm's name.

In tolling, a power marketer or fuel supplier enters into a contract with the operator of a generating plant to convert the power marketer's fuel into electricity. The generator is paid a tolling fee for its services.

PTC Energy will have about 350-400 MW power via tolling arrangements, that can be sold by the firm, Thakur said.

"This electricity will then belong to PTC Energy. They can directly sell it to somebody in the market, or they can sell it to PTC and PTC will sell it in the market."

PTC Energy will pay per unit generation charges in the range of 1.25-1.35 rupees per killowatt-hour (kWh) to the operators, Thakur said.

COAL ASSETS

PTC India has been eyeing overseas coal assets for about a couple of years for now, though the power trading firm could not acquire any assets, he added.

"We are still looking at few assets, because coal market was hot. Now that things are coming back to its senses, we have again started our efforts."

About 53 percent of India's power generation capacity is fuelled by coal, which is in short supply.

India's power output for September was restricted by coal shortages, the Central Electricity Authority said recently.

PTC India's financial services arm, PTC Financial, has raised 1 billion rupees recently, he said.

"If they (PTC Financials) need (funds), they can raise more."
Source: Reuters



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