(B.S)
Adani Enterprises Ltd. has won a contract to supply overseas coal to India’s top electricity generator as the nation aims to avoid a repeat of last year’s energy crisis, according to people familiar with the matter.
Adani, India’s largest trader of imported thermal coal, will deliver 1 million tons to state-run NTPC Ltd., which in October issued its first tender for coal imports in more than two years, the people said, requesting anonymity as the details are still private.
The decision to purchase coal from overseas comes despite the government’s commitment to reduce reliance on fuel imports. Coal accounts for about 70% of India’s electricity generation, and consumption is forecast to rise in the next few years, even as Prime Minister Narendra Modi makes a huge push to add renewables.
Adani last month began shipping the first export cargo from its controversial Carmichael coal mine in Australia. The shipment is headed to India, one of the people said, without giving details of buyers.
Benchmark seaborne coal prices hit a record in October though have since pared those gains, helping to boost the case for imports.
