India's Birla Corp said Friday that the company will use coal bed methane gas rather than coal for its Durgapur plant in the state of West Bengal.
India Energy News reported that the company took decision owing to the long-term risks associated with coal prices after being linked to global benchmarks.
The state-owned coal major Coal India Ltd introduced new coal pricing mechanism linked to global benchmark of Gross Calorific Value (GCV). However, it has to roll back the price rise on strong opposition from power and other industries.
Birla Corp, which operates 14MW captive power plant, plans to use coal bed methane gas to run a number of key equipment at the Durgapur unit.
The company is replacing the existing coal-fired slag drier with a roller press unit, which will be operated both by CBM gas and coal, the DNA reported citing company official.
To fulfill its gas needs the company is planning to lay a dedicated pipeline to bring the gas.
