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Indian coal supplier diversifying into generation
- 13 years ago (2011-03-10)
- Junior Isles
Bhatia, one of India's biggest coal importers, is moving into power generation due to cash flow issues with only supplying coal said Executive President P.S. Jassal.
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Bhatia International had suffered delayed payments for coal supplied to several Indian utilities including Mahagenco but the company now has enough of a cash cushion to weather the situation, says Jassal.
"In January money was tight due to Mahagenco delaying payments but we have sorted it out and the money is starting to come in," Jassal said.
Bhatia last year won tenders to supply 2 million tonnes of coal to Mahagenco and 2 million tonnes to National Thermal Power Corporation.
Indian state utilities typically pay months after coal has been delivered and can take time to make price adjustments for quality in addition, he said.
Bhatia is now keen to get into power generation on its own account, Jassal said.
The company is building a 10 MW waste heat merchant power plant at Chennai and is in the initial stages of planning coal-fired plants in India, he added.
"We intend to go into power, we want our own stand-alone power plants in a big way," he said. "In India we perennially face a shortage of power."
“It is not necessary to secure power off-take contracts before building a plant because there is always a need for power,” he said.
"First build your plant, you don't need to worry about selling the power," he said.
Bhatia and traders Adani Enterprises between them account for around 70 per cent of India's coal imports.