NTPC Sources 3 MT Coal from Commercial Miners

New Delhi, Apr 13 (PTI) India's largest power producer NTPC has sourced 3 million tonnes (MT) of the dry fuel directly from commercial miners in the past six months as part of a new coal procurement strategy for its doorstep delivery model.

The move is aimed at increasing the availability of coal for electricity generation during the upcoming summer season, a senior company official said.

Under the doorstep delivery concept, the commercial coal miner -- chosen through an auction -- is responsible for transporting coal to the company.

Earlier, NTPC used to procure a large share of its coal requirement from Coal India. It also sourced the dry fuel from its own captive mines, and imports.

"The company has adopted a new procurement model for doorstep coal delivery. It is also buying coal, floating a tender 'domestic coal procurement through auction'," a senior NTPC official told PTI.

In the last six months, NTPC has sourced around 3 million tonnes (MTs) of thermal coal through multiple procurement tenders, he said, requesting anonymity.

Explaining the concept, the official said logistics becomes an issue for the company and adds to the cost of coal procurement. Therefore, NTPC floated a tender inviting interest only from commercial miners to supply coal to the company.

Coal India cannot be a bidder in the auction, and the winning party cannot supply coal bought from Coal India either.

Market analysts said NTPC is the largest buyer of coal from Coal India, and if in the long run this procurement model succeeds, it will impact the sales of the miner.

The development assumes significance amid the government's projection of 277 GW peak power demand during this year's summer season.

For FY26, Coal India has set a production target of 875 MT.

The analysts said the new strategy will provide commercial mining companies with a big business opportunity.

A query sent to NTPC seeking details of the commercial miners who supplied coal remained unanswered.

NLC India, ACC, and JSW Energy Utkal, Sarda Energy and Minerals Ltd, and S M Steels and Power Ltd, Jharkhand Exploration and Mining Corporation, Western Coalfields, Jindal Steel and Power, and Innovative Mines and Mineral are among the winners of coal mines under the government's commercial coal auctions.

NTPC produced 438.6 billion units of power in FY25, its installed power generation capacity crossed 80 giga watt. NTPC mining produced 45 MT of coal from captive mines.

Since the inception of commercial coal mining in 2020, the Ministry of Coal has successfully auctioned 125 coal mines, with a combined production capacity of 273.06 MT per year. Once operationalised, these mines will play a crucial role in enhancing domestic coal production and strengthening India's energy security.

Collectively, these mines are expected to generate an annual revenue of Rs 38,767 crore, attract a capital investment of Rs 40,960 crore, and create employment opportunities for approximately 4,69,170 people.