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Coal Swapping is the Next Way Forward; Cost Optimization in Coal Consumption Holds the Key

News

Government today said it will soon notify the guidelines for swapping of coal linkages, a move that would help the nation save at least Rs 20,000 crore in electricity bills. 
Source:  ET

SNP Insights

Swapping of Coal Mines will reduce unnecessary transportation of coal,  hence trimming down  significant transportation cost & save coal quality degradation due to moisture shippage . As per SNP infra Study , coal in the volume of 52 MTPA can be swapped benefitting many central, state & private players in terms reduced coal cost burden. Hence reducing OPEX of power plant, increasing profitability of power developer & shrinking power cost marginally.

Source: SNP Infra Research

Note:  SNP Infra Research has come out with a report in September 2015, on Coal Demand Supply Dynamics, along with a detailed database of existing & upcoming coal mines. Database covers detail analysis of list of coal mines that can be swapped, with volume in terms of MT & Developer wise Cost saving in terms of INR Cr.