Lagatar24 Desk
New Delhi, Jan 5: Adani Enterprises Ltd. has won a deal to sell overseas coal to India’s biggest electricity generator as the country tries to avoid a repetition of last year’s energy crisis.
According to sources, Adani, India’s largest importer of thermal coal will provide 1 million tonnes to the state-run NTPC Ltd., which published its first coal import tender in more than two years in October.
Kolkata-based Damodar Valley Corp. Ltd., which is also state-owned, is reviewing a proposal from Adani for the supply of the same volume to its power facilities. Requests for comment from Adani, NTPC, and DVC were not returned.
After supply problems and rising demand caused shortages in the second half of 2021, India’s power providers are under pressure to increase coal stocks, resulting in outages in some provinces and restrictions on energy-intensive businesses.
Despite the government’s pledge to lessen dependency on imported fuels, the decision to buy coal from abroad was made. Coal accounts for around 70% of India’s electrical output, and demand is expected to climb in the coming years, despite Prime Minister Narendra Modi’s aggressive push to increase renewables.
Adani began transporting the first export shipment from its contentious Carmichael coal mine in Australia earlier this month. One of the people indicated the consignment was destined to India, but he didn’t say who the purchasers were.
Benchmark seaborne coal prices set a new high in October, but have since fallen, bolstering the case for imports.
