The document analyzes the techno-commercial feasibility of importing coal from Indonesia for the Krishnapatnam Ultra Mega Power Plant (KUMPP) in Andhra Pradesh, India. The KUMPP requires 15.33 million tonnes of coal per year, for which importing from Indonesia is most economical due to its short shipping distance and large coal reserves. Using supercritical technology also improves coal efficiency at the plant. Shipping schedules and costs are analyzed to determine that 8 vessels can meet the annual coal needs. The landed cost of Indonesian coal working out to $70.4/tonne is also calculated.

1. In this paper, a techno-commercial analysis method based on comparing 3 coal exporting countries in
Asia–Pacific region has been done for a 6 x 660 MW imported coal based ultra mega power plant
employing supercritical technology from Shanghai Electric Corp., China located in Krishnapatnam (A.P,
India) to show “How much economic is importing coal for Krishnapatnam UMPP ”. Annual coal
requirement is 15.33 MTPA @ 4290 Kcal/Kg (GCV) on GAR basis from Indonesia. FOB for Indonesian is
$ 50 /T & landed cost is $ 70.4 /T on CIF basis at plant site. Coal is imported in CAPESIZE vessels of
1, 75,000 DWT (87,500 GRT) @ 15 Knots in 7.5 days from Indonesia. KUMMP was awarded to
RELIANCE POWER LTD, & PPA of levelised tariff of Rs. 2.33/Kwhr has been signed between the
beneficiary state (T.N, A.P, Maharashtra & Karnataka) for 25 years. Analysis for cost formation of the
landed cost of imported coal at power plant site as well as the effects of coal consumption , cycle time
of vessels, different routes, duration & delivery time and characteristics of Indonesian coal has been
discussed. Indonesian coal is most economical because of short distance and huge availability to meet
plant requirement. Thus coal consumption is reduced by employing supercritical technology in KUMPP
as heat energy produced by imported coal is more efficiently utilised for generating electricity.
Ultr a Mega Power Plant 6 x 660 MW
umpp is located near krishnapatnam village in muttukur mandal of Nellore distt of coastal Andhra Pradesh.
LATITUDE 140 – 18’ – 26” N & LONGITUDE 800 – 07’ – 11.81” E. It has 6 units of 660 MW each which is to be
commissioned by 1st April 2013. The has installed capacity of 3960 MW. Contracted capacity is of 3465
MW to 3762 MW, employing supercritical technology from Shanghai Electric Grp,China. .
Some parameters to be considered for each unit :-
• Pressure: 247 kg/sq.cm (abs)
• Main steam temp :535 ° C
• Reheat temp : 565 ° C
• Station heat rate : 2250 Kcal / Kwhr
• Availability :90 %
• PLF : 85%
Project Dynamics
• The most suitable location for importing coal are south Africa, Australia & Indonesia in Asia- Pacific
region.
• 15.33 MPTA is annual coal requirement , 2076 tph ,49824 tpd @ 4290 Kcal/Kg (gcv) on GAR basis.
• Coal is imported on AR & DB basis .
a. AR (as received)- includes total moisture
b. DB (dry basis) - excludes all moisture
• Sharing of power- 40 % to A.P & 20 % to Maharashtra, T.N, Karnataka each.
• The nearest port to plant site is Krishnapatnam port.
a. One of the India’s largest and fastest growing seaports, Krishnapatnam Port.
b. It is fast becoming a port of choice for all international cargo originating from and destined to the
Southern and Central India.
c. Can store 0.63 MT (15 days) of coal at port and 1.26 MT at plant site for (30 days)
d. Maximum handling loss of 0.2 % at port.
ABSTRACT
Techno-Commercial Analysis of Importing Indonesian Coal for Krishnapatnam Ultra Mega Power Plant 6 X 660 MW
K
Mr. Manoj Vyas - MBA Power Management
Shri. Anil Kumar – Project Guide, Senior Analyst.
NPTI Faridabad (Under Ministry of Power, Govt. Of India)
manojvyas.ee@gmail.com

2. Coal Linkages & Coal Markets
AUSTRALIA
INDEX
Price(fob) US$
(4 Aug-2008)
GCV(Kcal/Kg)
Time In Delivery(Days)
Indonesia
• Indonesia is world’s no .1 thermal coal producer
of coal resources and 18.5 bn tons of
reserves are present in the South Sumatra
• RCRPL has acquired Srivijaya Bintangtiga Energy, Bryayan Bintangtiga Energy and Sugico
Pendragon Energy in the
hectares.
• The coal from the mines would be supplied to Reliance Power’s 4,000
Power Project at Krishnapatnam in Andhra Pradesh and also to the Shahapur power project
in Maharashtra
• Reliance has acquired mines with reserves of 2 billion to
linked model
• Since the mines are located in the South Sumatra region which is closer to India's east coast,
shipping time will be cut down by two days
• Reliance plans to build infrastruc
• The three mines acquired by Reliance Power in Indonesia have coal reserves valued at
about Rs 20,000 crore
• There are 2 coal markets in world Atlantic & Pacific.
• The coal can be purchased on contract basis & spot market
basis.
• Types of coal are hard & soft on the availability basis.
• Hard & soft coal be further bifurcated into coking (for iron &
steel manufacturing) & non-coking
generation).
AUSTRALIA SOUTH AFRICA INDONESIA
NEWC RB
160 155.13
6300 6000 4200
17.42 13.35 7.50
no .1 thermal coal producer. Indonesia has an estimated amount of 90 bn
of coal resources and 18.5 bn tons of coal reserves. More than 64% More than 64% of country’s coal
reserves are present in the South Sumatra.
RCRPL has acquired Srivijaya Bintangtiga Energy, Bryayan Bintangtiga Energy and Sugico
Pendragon Energy in the South Sumatra area of Indonesia spread over an area of 40,000
The coal from the mines would be supplied to Reliance Power’s 4,000-
Power Project at Krishnapatnam in Andhra Pradesh and also to the Shahapur power project
mines with reserves of 2 billion tonnes on a risk
Since the mines are located in the South Sumatra region which is closer to India's east coast,
shipping time will be cut down by two days
Reliance plans to build infrastructure, including a 100-kilometre railway line
The three mines acquired by Reliance Power in Indonesia have coal reserves valued at
Atlantic
South Africa
Columbia
There are 2 coal markets in world Atlantic & Pacific.
The coal can be purchased on contract basis & spot market
& soft on the availability basis.
Hard & soft coal be further bifurcated into coking (for iron &
coking coal (for power
1%
South sumatra
east kalimantan
riau
south kalimantan
others
INDONESIA
ICI
50
4200
7.50
imated amount of 90 bn tons
More than 64% of country’s coal
RCRPL has acquired Srivijaya Bintangtiga Energy, Bryayan Bintangtiga Energy and Sugico
spread over an area of 40,000
-MW Ultra Mega
Power Project at Krishnapatnam in Andhra Pradesh and also to the Shahapur power project
nnes on a risk-free production-
Since the mines are located in the South Sumatra region which is closer to India's east coast,
railway line
The three mines acquired by Reliance Power in Indonesia have coal reserves valued at
Atlantic
Africa
Columbia
Pacific
Indonesia
Australia
China
sumatra
kalimantan
kalimantan

3. Coal Analysis
There are 3 types of coal analysis:
a. Qualitative : proximate analysis & ultimate analysis
b. Quantitative: coal consumption on hourly, daily, monthly & annual basis.
c. Cost: among Australia, South Africa & Indonesia as per there coal indices .
Ship scheduling
Cycle time 1+5.50+1+1+5.50=14days
No.of available days 320
No.of voyages 320/14=23
Qty per vessel(175 DWT) CAPESIZE 87500 GRT approx
Annual capacity 87500 X 23=2 MT
Annual capacity of 8 vessels 16 MTPA
The requirement of 15.33 MTPA of the KUMPP can be met with ease by above method.
GCV of Coal (designed) 4290 Kcal/Kg
Specific coal consumption 0.5244 kg/kwhr
Hourly consumption of coal(6X 660MW) 1750 Te
Daily coal consumption @85% PLF 4200 Te
Annual coal requirement @85 % PLF 15.33 MTPA
Description
quality
GCV(GAR)
Kcal/kg
Price(US$) as
on
06-june-08
TM(GAR)% Ash(GAR)% Sulphur%
ICI-1 6500 120.36 12 12 1
ICI-2 5800 95.17 18 10 0.8
ICI-3 5000 75.58 30 8 0.6
Reliance coal
ICI-4
4290 50 33.30 2.60 .24
Port name
Distance
(Km)
Speed (Kts)
Seatime
(days)
Port time
(days)
Total
delivery
time
Departure
(including 1
day at
loading port)
Arrival
Tarah coal
terminal,
Indonesia
3667 15 5.50 2 7.50
15-8-2008
7 hrs
20-8-2008
23:32hrs
Richardsbay
port, SA
7569 15 11.35 2 13.35
15-8-2008
7 hrs
27-8-2008
15:27 hrs
New castle
port,
Australia
10281 15 15.42 2 17.42
15-8-2008 7
hrs
30-8-2008
17 hrs

4. Landed Cost of Indonesian coal
Landed cost consist = FOB ($ 50) + freight rates + inland handling charges at Krishnapatnam port.
= CIF + inland handling charges at Krishnapatnam
Data for calculating landed cost :
a) Cost of coal at Indonesian coal = Rs. 2000 @$ 50 /T ($ 1= Rs. 40)
b) quantity of coal imported form Indonesia through 175000 DWT vessel
c) rail distance (in km) for carrying coal from Indonesian Mine end to Indonesian Port
d) transportation cost of coal/tonne/km
e) coal handling charges /tonne at Indonesian Port
f) Sea - route Distance (in Km.)
g) transportation cost of coal/tonne/km
h) coal handling charges /tonne at Krishnapatnam Port
Options for sourcing coal
There are 3 options for sourcing coal:
a. Port > conveyer> project site
b. Mid sea Anchorage >
c. Mid sea anchorage >
Landed Cost of Indonesian coal
+ freight rates + inland handling charges at Krishnapatnam port.
handling charges at Krishnapatnam port = $ 70.4
Cost of coal at Indonesian coal = Rs. 2000 @$ 50 /T ($ 1= Rs. 40)
quantity of coal imported form Indonesia through 175000 DWT vessel = 87,500 T
distance (in km) for carrying coal from Indonesian Mine end to Indonesian Port
portation cost of coal/tonne/km= Rs.1 /Km
coal handling charges /tonne at Indonesian Port = Rs. 320
route Distance (in Km.) = 3667 Km
rtation cost of coal/tonne/km (through sea)= Rs. .30
coal handling charges /tonne at Krishnapatnam Port = Rs. 259
There are 3 options for sourcing coal:
conveyer> project site
id sea Anchorage > canal system > project site
Mid sea anchorage > captive port > conveyer > project site
+ freight rates + inland handling charges at Krishnapatnam port.
= 87,500 T
distance (in km) for carrying coal from Indonesian Mine end to Indonesian Port =100 Km

5. PDCA Cycle
• Plan : To procure best quality coal at cheaper rates
• Do : search various locations , supply chain, logistics & risk analysis
• Act : efficient power at cost - effective rates
• Check: Bottlenecks, cycle time, escalations, requirement
Questions
1. What is supercritical technology and what is the significance of it in case of UMPP & coal
consumption?
2. What is coal linkage and how it is different from captive coal mines?
3. How many coal linkages have been notified so far?
4. How ship scheduling has been carried out in this case?
5. What would be the landed cost in this case and how it is calculated?
6. Which is best option for sourcing coal & why?
7. What are INCO-TERMS? Differentiate between those which have been used here.
8. How many types of vessels are there in world for transporting coal? Name few with their
capacities.
9. What will be the landed cost if reliance would have purchased its mine in Kalimantan, the
place where TATA has acquired mines?
10. Calculate the price escalation as per CERC guidelines for importing coal for 25 yrs for
KUMPP.
11. Why china has stopped exporting coal?
12. What are the main reasons for increase in freight rates & coal demand?
13. What are various factors affecting global FOB coal prices?
14. Is there any risk in Indonesian mines? Discuss.
15. Name Indonesian coal price index. Name some international coal price indices .Why
Indonesia has formed its own coal price indices?
16. Why Indonesian mines for Krishnapatnam UMPP?
17. Is there any potential for sequestration of carbon-dioxide at Krishnapatnam UMMP?
18. COAL is providing enhanced security for power plants. Why?
Bibliography
1. www.mjunction.com
2. www.coal.nic.in
3. www.infraline.com
4. www.ausraliancoal.com
5. www.argus.com
6. www.globalcoal.com
7. www.plats.com
8. www.mccloskey.com
9. www.barleyjonker.com
10. www.coalindoenergy.com
Manoj Vyas- MBA (Power Management)
Shri. Anil Kumar- Project Guide (Senior Analyst)
NPTI – Faridabad