Power Sales:
The scenario for the Power industry appears more encouraging than ever.
The 'Power for All by 2012' target by the government, when achieved, could result in around 1000 KwH (Units) being consumed per capita. This indicates that increased power supply will not actually satiate demand for power in India, but catalyse it.
The Government has provided various fiscal incentives for companies to invest in this sector, clearly indicating the larger role this industry needs to play in the near future.The Indian power sector has the fifth largest electricity generation
capacity in the world and the world’s third largest transmission and
distribution network.
The Madras Aluminum Company (MALCO) Mettur is supporting power requirement of Tamilnadu for last 3 years, by exporting reliable and uninterrupted power. We supply power to TNEB and third party customers, including prominent industries, at very attractive rates. Third party customers benefit by getting hassle free uninterrupted power round the clock. Most of our current 25 customers have been with us for a long time and have been benefiting from our relationship.
Other Sales:
We have been selling the complete fly ash and bottom ash generated by our power plant to brick and cement making units, thereby ensuring there is no harmful effect of the by products of our plant.
We are also selling the old stock of red mud, which is waste product produced during the manufacturing of aluminum, to various cement companies.
Coal Procurement:
MALCO's power plant comprises of four units (each of 25 MW) in operation. Its a thermal power plant with primary fuel as coal. Our boiler is designed for High GCV, low ash and sulphur coal. Our annual requirement is ~600,000 MT. We primarily source coal from Indonesian Origin either on spot basis, HSS or via Long term contract.
From this FY we have all our shipments arriving to Karaikkal which is logistically viable in terms of cost incurred and when compared to other ports like Chennai and Tuticorin. Our entire movement is by Rail.