India’s largest utility company, NTPC Ltd, plans to import coal for the first time in two years, highlighting concerns over the country’s coal supply crunch. NTPC has issued a tender seeking 1 million tons of coal with an energy content of 4,700 kilocalories per kilogram. It issued another tender on behalf of Damodar Valley Corp, seeking an additional 1 million tons. The imported coal will be used to fuel domestic power plants in areas most vulnerable to supply disruptions, the New Delhi-based firm said.
Coal accounts for 70% of India’s electricity, but the South Asian country has been grappling with a supply shortage since at least August, resulting in curbs on the power supply to some energy-intensive sectors. There are signs of easing supply restraint, with inventories at domestic power plants rising to 7.6 million tons last week, the highest since October 5. However, that represents just about 25% of the level in the same week in 2020 and would be enough for only four days of consumption.
