Coal India plans JV with Paradip Port

Posted by Daily Shipping Times on 15-06-2017        Tweet

PARADIP : Coal India is planning joint venture with Government-controlled Paradip Port to sell blended coal as per consumer’s requirement for better value realisation. CIL offers source-specific linkages for raw coal to power generation utilities.

The company has subsidiary-based notified prices for different types of coal determined by gross calorific value (GCV).

The model suffers from a range of inadequacies. First, bulk of the thermal coal produced in the Country has low calorific value and high ash content. For emission control and better techno-economics, gencos blends this with high value coal.

The high value coal can either be imported or domestically sourced. In India, mostly Ranigunj coalfield under Eastern Coalfields Limited (ECL) produces such coal in limited quantities. But whichever route gencos take the cost is heavy. For example, the Tamil Nadu genco sources bulk of the fuel from Ib-valley and Talcher coalfields in Odisha, located more than 1,200 kilometer (km) away.

This is carried to Tamil Nadu using Multi-Modal Logistics options. From mines, coal is first shipped to Paradip Port by rail and from here it would be shipped to Chennai. In the last leg, the coal will travel by road to power stations scattered across the State.