This document outlines fuel security issues facing NTPC and proposes solutions. It notes that NTPC is facing shortfalls in coal availability and affordability due to low domestic production, outdated mining technology, and fluctuations in the rupee. It proposes an integrated approach for NTPC's energy portfolio that emphasizes renewable energy, nuclear power, gas, and small hydro to reduce imported coal dependence. Near-term solutions include developing allotted coal blocks, acquiring overseas coal mine assets, and improving domestic coal transportation infrastructure. Long-term strategies involve procuring lower quality coal and retrofitting plants to support a more diverse, secure fuel supply.

1. ENSURING
AFFORDABLE
FUEL SECURITY
FOR NTPC

2. Page  2
PRESENTATION OUTLINE
INDIA AND NTPC OVERVIEW
FUEL SECURITY ISSUES
 ANALYSIS AND SOLUTIONS
CONCLUSION

3. Page  3
Capacity Addition
Targets
78,700 79,690 79,200
54,964
0 0
11th Plan 12th Plan 13th Plan
Planned Actual
Projected,CEA

4. Page  4
NTPC’s Share
Installed Capacity
NTPC Rest of India
Generation Capacity
205922 MW
43128 MW
250.63 BUs
733.87 BUs
On 31st March 2014,NTCP Annual Report
(Group)

5. Page  5
5
2012
~ 41 GW
43,108 41,184
15,740
7319
23355*
~47000
~85,000
Current capacity Under
construction
Invited bids from
vendors
Feasibility Report
Approved
Total Basket
Basket of projects
Figures in MW
* FR approved for XII Plan / XIII Plan
NTPC Target 128 GW Capacity (
2032, 28% From Non-fossil Sources )
Coal
Gas
Nuclear
Hydro
Renewables
81%
19%
56%
16%
11%
8% 9%
PPA signed for ~100,000MW
2032
~ 128 GW

6. Page  6
(Gigatonnes of coal equivalent 5),IEA
Global Fuel
Resources

7. Page  7
Year XI FYP* XII FYP (Projected) XII FYP (Projected)
Demand 696.03 980.50 1373
Supply 554 715 950
Gap 142.03 265.5 423
CONFIDENTI*data in MT, Ministry of Coal
Coal – Demand &
Supply

8. Page  8
Major Fuel Security Issues
Availability
Affordability
Accessibility
Environment Friendliness

9. Page  9
Fuel Security Issues
AVAILABILITY
• Low production
NTPC has a short fall of 10%
• Outdated Mining Technology
• Captive blocks are way behind
schedule.

10. Page  10
AFFORDABILITY
• Rupee’s Fall
Fuel Security Issues
Grade CFR ($) Freight
($)
Ex-plot
($)
Discharge Port
Indonesian
5,500 69.5 12 4,350 Vizag
5,000 66 12 4,150 Vizag
4,600 59 12 3,750 Tuticorin
Australian
5,500 88.5 20.5 5,600 Gangavaram
$1=60 Rupee

11. Page  11
ACCESSIBILITY
• Change in International Policies
Amendments in coal mining and pricing
internationally, affects imports.
• Localized Reserves
• Inadequate Facilities At Ports
• Land Acquisition
Fuel Security Issues

12. Page  12
Localised Coal
Reserves

13. Page  13
ACCESSIBILITY
• Change in International Policies
Amendments in coal mining and pricing
internationally, affects imports.
• Localized Reserves
• Inadequate Facilities At Ports
• Land Acquisition
Fuel Security Issues

14. Page  14
Measures to Beef up Production
From Upcoming Mining Project :
 Time frame clearance of coal mining projects.
 Up front forest and environment clearance
 Allocation of more coal blocks to private players/ end users with strict
deadlines and steep penalties for failure.
 A special purpose vehicle (SPV) may be set up initially to take care of
all regulatory clearances, which is then transferred to the Mine
developer

15. Page  15
Coal Demand Supply Scenario forecast FY 14 FY 15 FY 16 FY 17
Coal Demand 187 198 205 218
On date supply 119 119 119 119
LoA / New Supply 22 25 32 38
Total Linkages 141 144 151 157
%age Demand 75 74 73 72
Balance to be Met(B)
Captive Production 3 8.5 19.5 37
E-auction 3 3 3 3
Total Domestic(A+B) 147 155.5 173.5 197
%age of Demand 79 79 85 90
Imports (Domestic equiv.) 40 42.5 31.5 21
Actual Imports 23.5 25 18.5 12.4
NTPC’s Coal Demand
Forecast

16. Page  16
Strategic Solutions
Integrated approach
At time Options
Near Future Solutions
Long Term Strategy

17. Page  17
Integrated Approach
49000
6000
2000
6000 2000
Coal Renewable Nuclear Gas Hydro
NTPC’s revised target portfolio for 2017 (MW)
Aim of integrated approach is to eliminate the share of imported coal
from NTPC’s basket
• Ambitious foray in solar power
sector taking advantage of
government policies and subsidies.
• Setting up nuclear plants.
• Ensure gas supply by taking over
assets abroad.
• Small hydro up to 200 MW in north
east, less problems than high
capacity hydro.

18. Page  18
 Import of coal.
 E-Auction
 Tie up through MOU at premium price.
 To take up with CIL for finalization of FSA for new units at 90%
commitment level
 Transportation of coal through Inland Waterways at
Farakka/Kahalgaon/Barh
 NTPC may contemplate handing over their own fleet of wagons to
Railways for increased coal movement
At Time Options

19. Page  19
Ganga- Bhagirathi-Hooghly National
water way No-1
Kahalgaon
FarakkaBarh

20. Page  20
 Import of coal.
 E-Auction
 Tie up through MOU at premium price.
 To take up with CIL for finalization of FSA for new units at 90%
commitment level
 Transportation of coal through Inland Waterways at
Farakka/Kahalgaon/Barh
 NTPC may contemplate handing over their own fleet of wagons to
Railways for increased coal movement
At Time Options

21. Page  21
Near Future Solutions
• Development of allotted coal
blocks.
• Acquisition of assets (Domestic
and abroad).

22. Page  22
Coal Mine acquisition abroad
• NTPC is exploring options for acquisition of coal mines in Indonesia,
Australia, South Africa and Mozambique
• Due diligence to coal in Indonesia is going on.
• ICVL – JV of NTPC, SAIL, RINL, CIL and NMDC has also been entrusted
responsibility of thermal coal mine acquisition abroad.
• CIL is also exploring options of acquisition of coal mines abroad. NTPC is in
discussion with CIL

23. Page  23
Planning Long term Coal
Security
Procure Low GCV coal so as
to allow higher proportion of
blending
•Issues of Infrastructure bottleneck:
Higher volume of coal import
Port Infrastructure bottleneck
Railway transport bottleneck
•Take part in Port Infrastructure
Development and seek Railway
support for transport of higher
volumes
23
Strategy
Issues
Remedies
Coastal based projects
running fully on imported
coal
•Tariff calculations? (pass-through)
•Choosing projects to be relocated
•Coal pricing may be linked to CERC
index or global coal indices
•Older projects of XII plan could be
relocated
Retrofit existing boilers and
change specifications of
new boilers so as to allow
for higher GCV coal usage
•Issues of high costs
•High Expenditure of retrofitting
•Impact on cost of generation
•Long term coal security
•Stations where retrofitting needs to
be done is to be evaluated

24. Page  24
CONCLUSION
INFRASTRUCURE DEV. & LINKAGE
RE ENGINEERED PORTFOLIO MIX

25. Page  25
Queries?
Thank you