Low-cost power key to economic growth: Industry

Himanshu Vatsa | The Dollar Business Curb on coal imports and use of renewable energy can enhance the power generation capacity and make electricity more affordable in India, industry leaders said. The state-run National Thermal Power Corporation (NTPC) said it will reduce imports of coal so as to cut the production cost. The country’s largest electricity generator, which gets the supply of coal for its various units from Coal India Limited, said that it will use domestic coal more than imported ones. “Last year, we imported 16 million tonnes (MT) of coal, less than 16.6 MT sanctioned by the government. This time we are expecting that the Coal India will supply adequate amount of coal to us,” said Arup Roy Choudhury, Chairman and Managing Director, NTPC. "The corporation will review the supply of coal in every quarter to explore ways how to reduce its import bills. We will review in every quarter to see the supply of coal. If a thermal station is getting adequate coal from CIL, we will not import coal for that unit. I am expecting that this year our coal import bill will reduce significantly,” he said at the sidelight of the 'National Leadership Conclave' held in Delhi. On the use of alternate technology at coal-based power plants, he said that India’s thermal power units have the most advanced technique. “There is no technology in coal available in the world which is better than what we have,” Roy Choudhury told The Dollar Business. The NTPC along with other agencies are also engaged in research programmes and trying to increase the efficiency of electricity generation by 45%. “Just once percentage of increase in efficiency will reduce carbon emission by 2.5 %,” he added. He also advocated for the role of private players in producing electricity using renewable energy and make power more affordable for people. Referring to hydro and wind power projects, he said, “The energy basket of the country needs to have buyers and buyers need power at an affordable cost.” Devansh Jain, Executive Director of INOX Wind Ltd, which runs several wind energy power grids in the country, emphasised on the need for more investment in renewable energy sector. “We need to focus on bringing in a lot more capital into India. There are a lot of multinationals we can seize,” he said adding that the country can attract foreign investment in the renewable energy sector by enforcing effective policies. “A lot of funds globally are sitting on the wayside wanting to invest. I think, the enforceability of policy measures is extremely important,” he said in response to a question. In 2014-15, India generated 1 trillion units of power and coal-based power stations made a major contribution, registering 12.1% growth. Last year, Coal India's supplies to power utilities increased 8.6% as compared to the supply during previous year.    

This article was published on April 29, 2015 – 6:35 pm IST.