Power trader PTC India signs five year agreement to buy 700,000 tonnes of Indonesian coal a year for sale to Indian power projects

PTC Energy, fully owned by PTC India, has a signed a five year contract with a company, which has a stake in an Indonesian coal mine.India has 10 percent of the world's coal reserves, the biggest after the United States, Russia and China, but its coal imports have grown rapidly to an estimated 70 million tonnes in the fiscal year ended March.

Thakur did not elaborate on the price at which the deal has been struck. "We have put a floor price and a ceiling price...so we don't take undue risk on the volatility of coal prices."The country's thermal power generation in June was constrained by limited availability of coal. Thakur said the company has already sold 300,000 tonnes of coal to power produces in the April-June quarter and hoped to sell the remaining 400,000 tonnes in rest of the fiscal year.He said PTC Energy had also executed about 40,000 tonne of spot sale-purchase of coal during June quarters.