Chennai: Tamil Nadu Generation and Distribution Corporation (Tangedco) would save Rs 550 crore a year with its decision to stop the import of coal for its thermal power station as per the direction of the centre to use domestic coal instead of imported coal.
For the full capacity generation of its thermal power plants at North Chennai, Mettur, Ennore and Tuticorin, Tangedco requires 26 million tonnes of coal including 5.5 MT of imported coal.
According to a senior Tangedco official, the union ministry of coal has agreed to supply 5.5 MT of domestic coal through its Singareni Collieries Coalfields Ltd (SCCL), Eastern Coalfields Ltd (ECL), Western Coalfields Ltd (WCL) and Talcher Coalfields to substitute imported coal.
The secretary of the ministry of coal advised the state generation corporations to reduce imported coal as the Coal India Limited is in a position to supply enough coal to power sector.
His letter was followed by a communication from the CIL on September 28, 2016, requesting the Tamil Nadu government to advise Tangedco to stop importing coal and substitute indigenous coal available from the CIL sources.
On September 30, the ministry of coal convened a meeting in New Delhi where the CIL in principle has agreed to provide additional five MT to Tangedco through alternate mines so that import coal can be reduced substantially.
As per the agreement, the CIL agreed to supply 2.5 MT of coal from the ECL, 1 MT from WCL and 0.5 MT from Talcher fields, while SCCL will supply three MT of coal.
“By substituting Indian coal as directed by the Government of India, Tangedco would be saving about Rs 550 crore per annum at the current market rate of imported coal,” the official said, noting that the utility has decided not to call for tender to import coal for the next year.
