Higher Coal India supplies to help plants cut imports

Kolkata: Generation costs of plants running on imported coal are likely to fall as Coal IndiaNSE -6.04 % has started supplying them more local fuel which is much cheaper.

In November power plants imported almost 6.6 million tonnes of fuel, highest this fiscal. Imports fell 9.8% next month and another 6% in January as local supply rose.

To help achieve the Centre’s aim to stop coal imports by 2023, Coal India is focused on raising supply for import substitution and is in regular talks with power producers.

Imports are expected to fall further in the weeks ahead a local supply increases. Coal India has decided to supply around additional 70-75 tonnes a year to these companies.