DHAKA: Even as domestic demand for coal is dwindling with power plants in the country well-stocked, Coal India has started exploring export opportunities in Bangladesh with the upcoming Maitree super-critical thermal project there. An expert team which recently returned from India’s eastern neighbour after exploring coal export opportunities in that country is likely to table its report to CIL soon.
State-owned power generator NTPC is developing a 1,320 MW thermal power project in Khulna in Bangladesh along with Bangladesh Power Development Board (BPDB) which will need coal. It is here that Coal India is exploring the possibility of an export order. A 50:50 joint venture company, named Bangladesh India Friendship Power Company, has already been floated towards this project.
“Previously, Bangladesh had asked us to rationalise the coal prices of higher grades at par with international prices which could open up this corridor for us”, a senior Coal India official said adding, “It (Bangladesh) is one country we cannot ignore”. In a recent move, however, Coal India has increased prices by 6.29% over the current price which will bring an additional Rs. 3,234 crore of revenue. “This price revision will be applicable for exports also”, the official added.
Another senior official reasoned that Coal India, being an Indian company may find it easier to sign a fuel supply agreement (FSA) with the Maitree super-critical thermal project. Nevertheless, NTPC, together with BPDB will be considering the lowest bidder which will put Coal India into direct competition with Chinese and Indonesian fossil fuel.
“Signing of FSA will depend on the price quoted by lowest bidder and as such there will not be any preference for any particular company or country”, an NTPC official said. A typical 1,320 MW plant requires six million tonnes of coal a year with a buffer stock of three weeks; the Maitree plant is expected to have similar requireements.
Although Coal India is confident that the proximity with Bangladesh and the development of inland waterways will make its coal cheaper than the Indonesian variant, experts said the feasibility of this export also depends on the grade of coal opted and the price volatility in the international market.
According to BPDB, the present installed capacity of Bangladesh is 12,339 MW of which coal based plants comprise 2.03 per cent or 250 MW of total capacity. As per Bangladesh’s Power System Master Plan 2010, the power demand in 2030 will be about 30,000 MW and installed capacity is targeted to reach 40,000 MW. Off this, the coal based generation capacity is expected to be 15,000 MW.
