Adani Enterprises bags deal to supply overseas coal to NTPC

Adani Enterprises Ltd. has bagged a deal to deliver overseas coal to India’s top electricity generator, NTPC, as the country strives to avoid a repeat of last year’s energy problem. Adani, India’s largest trader of imported thermal coal, will supply 1 million tons to state-run NTPC Ltd., which in October released its first proposal for coal imports in over two years. Kolkata-based Damodar Valley Corp. Ltd., also state-owned, is reviewing a tender from Adani for providing the same volume to its power facilities. Indian power generators are under pressure to strengthen coal stockpiles after supply troubles and growing demand left the nation grappling with shortages in the second half of 2021, resulting in outages in some provinces and curbs on energy-hungry industries. The decision to acquire coal from overseas comes despite the government’s commitment to decrease dependence on fuel imports. Coal estimates for approximately 70% of India’s electricity production and consumption are forecast to increase in the coming few years, even as Prime Minister Narendra Modi makes a drive to add renewables. Last month, Adani, from its controversial Carmichael coal mine in Australia, commenced shipping the first export cargo. The coal mine is headed to India. Benchmark seaborne coal costs reached a record in October, though they have since reduced those gains, assisting in strengthening the case for imports. Image Source