September State-run NTPC is planning to strike a long-term offtake deal with coal companies abroad, to match its increasing demand. But due to the higher price range, the firm might restrict the import component of the total coal use to 10 per cent, though it is looking for acquisition of coal blocks outside India.

“We are thinking about signing a long-term coal import deal with foreign companies. This would be vital, as we are planning to acquire some blocks in Indonesia, Australia and Mozambique,” said Arup Roy Choudhury.

On the otherhand, regarding the power producer’s plan to cap import component to 10 per cent, he said that the aim is to source 70 per cent of coal from the Kolkata-based Coal India, remaining 20 per cent from the firm’s eight captive mines and about 10 per cent from imports, which include the production from acquired mines abroad. The company’s captive mines have a reserve of 1.8 billion tones. Set to come out of ICVL

Confirming the reports that the firm is not too keen on ICVL’s acquisition efforts, Choudhury said, “The assets that ICVL had identified are mainly of coking coal. Which can only be used for steel industry requirements? While regarding the Indonesia plans of ICVL, the local government has also decided to ban exports of coal below that calorific value, which could have been our requirement,” he said.

The company’s coal requirement for the financial year 2011-12 would be around 160 million tones, which is expected to zoom to 240 million tonnes in the next year. While this year, NTPC’s tptal capex is Rs 26,000 crore, it will require investments worth about Rs 30,000 crore per year over the next 10 years, for expansion plans.