NTPC’s Strategic Shift in Coal Procurement
Coal India Limited, The oldest fuel supplier forsees a potential revenue loss.
NTPC’s new coal procurement strategy ncorporates direct sourcing from commercial miners, yielding approximately 3 million tonnes over the past six months. This “doorstep delivery” model, facilitated by auction-selected miners, directly transports coal to NTPC power plants.
This strategic shift diversifies from the previous reliance on Coal India Limited (CIL), captive mines, and imports, enhancing coal availability, particularly during peak demand, while mitigating logistical challenges and costs. Auctions for domestic coal exclude CIL participation, ensuring independent sourcing.
NTPC’s changed strategy on how they get their coal, going more with private miners for direct delivery to their plants is a big shift from relying on Coal India, aiming for better supply, cheaper costs, and smoother logistics through auctions just for private miners. Basically, they’re diversifying their coal sources to keep things running smoothly.