NTPC's Strategic Shift: Pioneering Doorstep Delivery in Coal Procurement

NTPC, India's largest power producer, has adopted a new coal procurement strategy involving direct sourcing from commercial miners. The initiative, part of a doorstep delivery model, aims to boost coal availability for electricity generation. This marks a departure from NTPC's previous reliance on Coal India and imports.

India's leading power producer, NTPC, has shifted its coal procurement strategy by directly obtaining 3 million tonnes from commercial miners over the past six months. This initiative is part of a new doorstep delivery model designed to ensure ample coal availability for electricity production during the upcoming summer months.

Previously, NTPC sourced much of its coal from Coal India, as well as its captive mines and imports. However, under the new procurement model, commercial miners selected via auction are responsible for delivering coal directly to NTPC. This approach helps minimize logistics issues, thereby reducing procurement costs.

Market experts believe this shift could significantly impact Coal India's sales if successful long-term. With India's projected peak power demand soaring to 277 GW this summer, NTPC's novel strategy provides a lucrative opportunity for commercial mining companies, while simultaneously enhancing India's energy security through increased domestic coal production.

(With inputs from agencies.)