This would be second straight financial year NTPC may not make coal imports. NTPC's thermal coal imports mainly used for blending purposes and the company's decision would largely affect India's annual seaborne coal imports. Last year, India replaced 90 million tonnes of imported coal with domestic production.
NTPC accounts for about one quarter of the country's installed coal-fired power generation capacity.
Mjunction data showed India's coal imports fell 12.62% to 216 million tonnes in 2020, mainly owing to COVID-19 pandemic. And its receipts rebounded significantly alongside fast improving industrial activities since April 2021.
In April, India imported 14.04 million tonnes of coal, respectively up 2.88 million and 1.69 million tonnes from the year-ago and month-ago level.
Meanwhile, the country's largest coal miner Coal India Ltd (CIL) increased coal supplies to the power sector in recent months. In April-May, coal supplies to power industry by CIL via electronic auction jumped 49% on the year to 6.1 million tonnes.
NTPC's decision to stop coal imports can also help CIL to reduce its coal stocks. As of the end of May, CIL's inventories fell to 47.3 million tonnes from 87.12 million tonnes a month ago but are still sizeable.
Earlier this month, CIL said it would allow coal export via electronic in a bid to get rid of higher stocks.
(Writing by Rebecca Liu Editing by Alex Guo)
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