KOLKATA (miningweekly.com) – India Power Corporation Limited (IPCL) is scouting for coal assets in South Africa and Indonesia to establish coal supply linkages for its current 1 000 MW thermal power generation projects.
“We are looking at coal mines already in operation or nearing production in South Africa and Indonesia,” IPCL chairperson Hemant Kanoria said.
“A few proposals for some assets are being examined and due diligence is under way. Our target is 100% buy-back of coal from mines having reserves of 5-million to 25-million tonnes,” Kanoria said.
IPCL has floated a wholly-owned subsidiary, Swayambhu Natural Resources Private Limited, dedicated specifically to source coal feedstock for its existing and planned power projects.
Kanoria said that in the medium term, the independent power producer (IPP) would be sourcing coal from the spot markets and also through short-term agreements with international coal asset owners in Indonesia.
Domestic sourcing would depend on purchases through e-auctions from Coal India Limited (CIL) and coal rejects from local washeries, he said.
Kolkata-headquartered IPCL was also ready to bid for coal blocks at the forthcoming auction of reserves by the Coal Ministry.
Among the current thermal power projects under implementation by IPCL were a 450 MW plant at the port town of Haldia and a 540 MW plant at Raghunathpur, both in the eastern Indian province of West Bengal.
For the Haldia plant, the power producer had established linkages with domestic coal sources and back-up agreements had been concluded for imported coal, Kanoria added.
Commenting on the domestic coal shortages that Indian thermal power producers face, Kanoria said: “There are enough coal reserves in India and we are sure that the present government is seriously working on developing mine development operators, both international and domestic, through state-of-the-art technology, which would substantially augment both production and productivity.”
IPCL is an integrated energy company with a presence across energy sources, conventional coal, wind and power along with renewables, wind and solar, as well as distribution businesses.
In its previous avatar as Dishergarh Power Supply Company Limited, taken over by IPCL, it was the oldest power distribution licensee in eastern India with rights over 618 km2 in the eastern Indian coal belt of Asansol-Raniganj.
The company’s strategic plans in the generations segment include 1 320 MW in the eastern province of Bihar, 1 320 MW in Gujarat in the west, 1 320 MW in Jharkhand in the east and 1 320 MW at Sagardighi.