Looks like Neyveli couldn't agree on an overseas thermal coal...

Looks like Neyveli couldn't agree on an overseas thermal coal provider; we were told in a report last May that they were looking for a source and imports would commence 3 to 4 months later -

"Following a schedule drawn up by NLC, imports would commence from September 2013 and one-million tonnes would be shipped in the first year, increasing to 10-million tonnes, as the company’s thermal power plants went on-stream in phases"

"Once all EOIs were obtained, NLC would initiate long-term supply contracts within a three-month timeframe, as well as equity investments in coal assets. The company had earmarked a corpus of about $450-million for strategic equity investments."


Well they did keep to their schedule ( to which they do consistently seem to be doing ) in regard to obtaining a source, as on the 24th of September 2013, they look like they signed a bit of a stop gap and signed a Fuel Supply Agreement with Mahanadhi Coalfields Limited a subsidiary of coal India, for supply of 3.00 MT of a low grade high ash 'sub-bituminous' coal to blend with lignite to burn in it's new plant coming on line , the 2 X 500MW thermal power project at Tuticorin in Tamilnadu, unit one goes on line this month and unit two by May this year.

Looks like they are still looking for that alternative source after September 13 came and went, as on a neyveli website update from the 4th of February , this year , 2014 , they state

"Steps are being taken to identify a suitable coal source abroad also to tie up long term coal supply as the steam generators are designed to operate with a blend of imported and indigenous coal"

Hopefully that 'corpus of about $450-million for strategic equity investments' can be put to good use on a Coldry plant and they realise that they can stop looking abroad..

Just been flicking back on the ECT / Neyveli presentation from February 2012; I had posted a couple of days ago that Coldry would need to be blended with lignite in order to reduce the over all Kcal , as a 100% mix of 5500 kcal Coldry would probably burn the boiler out, as the supercritical boilers that Neyveli installed and the boilers going forward and ordering through BHEL were ranging in the 3800 to 4800 Kcal design range....I was basing my 5200 to 5500 kcal on figures stated for Latrobe Valley lignite..reading the India presentation...the figures are dragging NLCs pour quality lignite from 1900 kcal/kg to 4400 kcal/kg......meaning that on current NLC supercritical boilers it would be possible to use Coldry in a 100% mix or only slight blending for lower design rated boilers.

http://www.miningweekly.com/article/indias-lignite-miner-nlc-to-import-coal-for-thermal-power-projects-2013-05-13

http://m.timesofindia.com/city/chennai/Neyveli-Lignite-Corporation-unit-1-expansion-to-be-commissioned-in-February/articleshow/29417636.cms

http://www.nlcindia.com/index.php?file_name=about_01h

Again , all just IMO

OW