State-owned Coal India will go on with non-power sectors to offer domestic coal in lieu of 50 per cent of the import component in the ongoing fiscal year.
The development assumes the significance as the government is working to eliminate coal imports.
The official said, “The world’s largest coal miner offer of domestic coal ‘as is where is basis’ to non-power FSA (fuel supply agreement) consumers in lieu of 50 per cent of the import component will be continued in 2017-18″.
However, the Coal India will provide the fuel to non-power consumers such as fertiliser, firms and steel producers without affecting the supply to the power sector. The official said that the sources like Coal India Limited arm Central Coalfields Ltd (CCL) and Eastern Coalfields Ltd and South Eastern Coalfields Ltd (SECL) would provide the coal.
It is our vision to bring down to zero thermal coal imports of power Public Service Units like NTPC in the current fiscal year, had said the government earlier. It is the move that would reduce the country’s import bill by nearly Rs 17,000 crore.
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The private companies that are operating in the power space would also slowly convinced by the government in order to totally stop the import of thermal fossil fuel.
Despite being rich in coal reserves, the fossil fuel has to be imported by the country for power plants with an installed capacity of 83,100 megawatts which are designed to feed on imported coal.
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