The first coal-laden rake left for Bangladesh on July 2 and the coal send was of below 2,200 gross calorific value (GCV), meant for the 1,320 MW Rampal thermal power station, an NTPC and Bangladesh Power Development Board (BPDB) JV, at Khulna in Bangladesh.
India has sent its first export consignment of coal to Bangladesh, after Coal India’s (CIL) policy amendment last month allowing traders, lifting coal from e-auction, to export. The first coal-laden rake left for Bangladesh on July 2 and the coal send was of below 2,200 gross calorific value (GCV), meant for the 1,320 MW Rampal thermal power station, an NTPC and Bangladesh Power Development Board (BPDB) JV, at Khulna in Bangladesh.
Although CIL couldn’t disclose the name of the exporter or the FOB (free on board) price at which the coal was exported because of its non-disclosure agreement with the e-auction conductor (mjunction), it said the coal exported was purchased under spot e-auction from Dahibari siding of Bharat Coking Coal.
Bangladesh bound coal left the Indian shore from Syama Prasad Mookerjee Port (SMP) erstwhile Kolkata Port Trust on July 3 and would be unloaded at the Mongala Port in Bangladesh from where it would be sent to Rampal’s captive jetty, an SMP official said.
While mjunction too denied commenting anything on the purchaser or the prices, sources involved with the Rampal project told Fe that Godavari Commodities were the exporter.
However, a CIL executive said the development took place in less than a month of CIL tweaking its e-auction coal sale policy and the first coal-laden rake consisting of around 4000 tonne left for Bangladesh.
According to an NTPC official, the centre allowing exports of Indian coal will benefit the Indian power companies executing thermal projects overseas the most since such projects will have to depend less on other coal exporting countries like Indonesia and South Africa, whose prices generally remain volatile.
“Though the first Indian coal export was in small quantity, we expect that CIL would gradually offer larger volumes for export,” the NTPC official said adding, the Rampal project would look for 20,000 tonne of Indian coal a month once the plant starts operation in full capacity.
CIL said the amended e-auction sale policy, allows the overseas sale of coal bought under spot e-auction and special spot e-auction by domestic coal purchasers only which also includes the domestic traders.
“Though small in quantity, what is encouraging is that a beginning has been made. We look forward to more exports that would help in improved coal sales under the two categories of the auction platform,” a senior CIL executive said.
SMP chairman Vinit Kumar said Bangladesh has already declared Kolkata as a hub for coal and inland waterways would also be used for transporting coal to Bangladesh with incentives offered for such transportation.
For the quarter to June this fiscal, CIL has allocated 6.7 million tonnes (MTs) of coal under spot e-auction which is nearly one-fourth of the entire booked quantity of 27.3 MTs. The auction fetched the PSU miner a 30% add-on over the notified price against a 16% add-on fetched under spot e-auction during the same period last fiscal.