NTPC major beneficiary if Coal India ups production: IIFL

 

NEW DELHI . The power analyst predicted that state-run NTPC could be one major beneficiary of such a move. Dole was commenting on reports that Coal India, which enjoys a virtual monopoly on coal mining in the country, plans to increase its output by 8 percent to 510 million tonne in 2015.

 

About two-thirds of India's power plants run on coal and Coal India's inability to scale up production has left a lot of them starved of the fuel. This has been cited as a major reason for the distress in the power sector. 

 

But the other side of the argument, Dole pointed out, is that many power plants have been running at below optimal plant load factors (PLF), indicating less than ideal demand from state electricity distribution companies, many of which have been bogged down by regulated tariff in recent years.Money control