New Delhi: Adani Enterprises has won a contract to supply coal abroad to run NTPC – the best Indian electric generator – because the nation aims to avoid repetition of the energy crisis last year, according to people who are familiar with this problem.
Adani, the largest trader in India from the Thermal Coal Import, will provide 1 million tons to NTPC, which in October issued the first tender for coal imports in more than two years, said people, asking for his anonymity still personal.
Damodar Valley Corp.
based in Kolkata, also state-owned, is checking proposals from Adani for the same volume supply with its power plants, people said.
Adani, NTPC and DVC did not respond to requests looking for comments.
Electrical producers are under pressure to increase coal stocks after supply disruption and increasing demand leaving the country wrestling with shortages in the second half of 2021, which leads to blackouts in several provinces and energy restrictions on energy.
The decision to buy coal from abroad comes despite the government’s commitment to reduce dependence on fuel imports.
Coal accounts for around 70% of Indian power plants, and consumption is expected to increase in the next few years, even as Prime Minister Narendra Modi makes a big boost to increase renewable energy.
Adani last month began sending the first export cargo of controversial Carmichael coal mine in Australia.
The delivery leads to India, one person said, without providing buyer details.
The benchmark for the price of sea coal reached a record in October even though it had since nitified the profit, helping improve cases for import.