India’s largest electricity producer NTCP, is considering the development of its first coal-fired power plant to be fueled completely by imported coal, reports Bloomberg. According to the article, NTCP is assessing options for a 2,400 MW plant in the southern state of Andhra Pradesh.
A dip in international pricing for thermal coal has created an opportunity for NTPC to consider a power station completely fueled by imports as India faces ongoing shortages of domestic coal supplies deepening concerns about the economy. India relies heavily on coal power, with the nation’s utility companies currently boasting more than 100 gigawatts of coal-fired generation when operating at capacity.
However, the country's state-controlled coal mining company, Coal India, has again fallen short of coal production targets. Coal India has put pressure on the nation's coal-fired generation recently by consistently failing to meet its production targets, leading to instability on the grid and higher electricity costs.
NTPC has also suffered setbacks in cultivating its own domestic coal resources, recently seeing a $3.9 billion deal with Australia’s Leighton Holdings to develop and operate a mine in the eastern state of Jharkhand fall apart.