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Coal India plans joint venture with Paradip Port to sell blended coal at the consumer’s requirement. Power stations normally acquire coal from Coal India through linkages. However, since the coal produced in India is mostly of low calorific value and high ash content, utilities blend it with high value coal in order to achieve better results in terms of emissions. High quality coal is normally imported or sourced from the Ranigunj coalfield, explored by Eastern Coalfields.
Some of those linkages may carry high logistics costs. A utility in Tamil Nadu sources part of its coal from the Ib-valley and Talcher coalfields in the state of Odisha, some 1,200 kilometers away; the rest comes from Ranigunj, in the state of West Bengal, 1,700 kilometers away. Under the proposed joint venture, coal will be carried to the Paradip Port, blended according to the utilities’ preferences, and then shipped from there.
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