Thursday, March 09, 2006

Power generation companies are being hit by a double whammy - IIPM Publication

Power generation companies are being hit by a double whammy. On the raw materials side, thermal power plants – the mainstay of India’s power sector – are being crippled by a shortage of coal supplies. It may be ironical, but though India is sitting on the second largest reserves of coal, it cannot produce enough to feed India’s thermal plants. This year, companies like NTPC will together end up importing 20 million tones of coal. Plants based on gas are in worse shape: there has been an almost four fold increase in the prices of gas.

Source:- IIPM Editorial

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