CAG indicates structural fuel management inefficiencies at NTPC coal-based plants

An audit report by the Comptroller and Auditor General of India has indicated that the structural fuel management inefficiencies at NTPC’s coal-based power plants, has led to an increase in fuel cost and thereby, the cost of energy. The report states that around 13 specified power stations of NTPC incurred an additional expenditure of Rs 68.7 billion during 2010-16 for procuring domestic coal. As per the report, the company had to procure coal at higher rates due to inadequate coal linkages, delay in the signing of fuel supply agreements and shortfall in supplies. In a separate development, NTPC has decided to shut down old TPPs aggregating 11,000 MW of capacity, replacing them with supercritical capacity.

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