In a First, NTPC Begins Procurement of Commercial Coal for Thermal Power Generation.

In a significant shift in its fuel sourcing strategy, NTPC Limited, India’s largest power producer, has started procuring coal from privately owned commercial coal mines for the first time. Until now, the company had relied exclusively on state-run Coal India Limited (CIL) through long-term fuel supply agreements (FSAs).

According to senior company executives, NTPC floated tenders over the past six months to source 3 million tonnes of coal from private commercial miners. Deliveries under these contracts have already commenced.

“We are receiving coal from commercial mines. The supply from these mines is directly to our plants. The tender was for NTPC’s non-pithead power plants,” a senior official said.

This move marks a strategic diversification in NTPC’s coal procurement as it seeks to ensure more reliable and flexible fuel supply for its power stations amid rising energy demand.

ET