Gujarat power plants may fire up coal imports by 300%

AHMEDABAD: Huge investments lined up in coal-fired power plants in Gujarat will propel coal imports by almost 300% over the next four to five years. If the proposed investments in imported coal-fired power units come through, ports in Gujarat will import over 50-55 million tonnes of coal annually, up from current imports of less than a million tonnes.

Coal consumption by captive power units in coastal areas will also increase, which should further boost demand in the state.An ultra mega power project of 4,000 MW based on imported coal alone will consume close to 16 mt to 18 mt of coal.

In addition, other 10,000-MW imported coal power projects were announced during the Investors’ Summit in January this year, all of which will be based in the coastal areas of Gujarat. While the ultra mega power project will be executed by Tata Power, other players setting up imported coal-based units include Videocon, Torrent Power, GSPC and Visa Power.

Infrastructure companies into port development in Gujarat are also bracing for the opportunity in coal imports. Adani Group, which owns and manages Mundra port, is already in the process of setting up two coal berths for catering to the demand from ultra mega-power projects. In addition, other players are also likely to expand their coal import facilities.

“Coal imports in Gujarat will go up dramatically in coming years. Not only will the captive users import more coal, all weather ports too will have to expand capacities to be able to import more coal,” experts in the port sector said.

Increase in imported coal will also augment demand for domestic coal. Such is the likelihood of demand for coal in the power sector in coming years that the Central Electricity Authority is propagating the concept of an independent coal regulator for fair pricing of domestic coal.