The good news for consumers is that, in the long run, it may even bring down power tariff.

According to the decision taken in principle at Tuesday's Board meeting, the first consignment of 1.25 lakh tonnes of imported coal will be used sparingly: the Ukai and Sikka power stations will use 30 per cent imported coal and 70 per cent of the indigenous variety. The success of this experiment will influence the extension of the imported coal to Wanakbori and Gandhinagar.

Sources say the imported coal will suit the Gujarat Electricity Board boilers more than the indigenous variety, as they were designed for coal with a higher calorific value (CV). While Indian coal has a CV of 3,500, the imported variety is of 6,000 CV, and cheaper than the Indian strain.

Moreover, the Board is expected to save substantially on the cost of disposing the ash, as the imported coal is said to have half the ash content of the indigenous variety. With each power plant consuming 30,000 to 40,000 tonnes a day, the Board pays Rs 30 for each tonne of ash disposed in the ash ponds created near the stations.

The better quality coal would also cause fewer breakdowns and promote fuel efficiency, a Board official said, adding that it would save the Gujarat Electricity Board crores in the long term.

While the exact cost of the imported coal is expected to emerge only after the tenders are invited, Board Member (Administration) S K Nanda said they hoped to benefit from the recession in the industrial market as well. The tenders process will be monitored by a committee headed by Board chairman Nalin Bhatt, the member (technical), the member (administration), the member (finance), three government-appointed members and Chief Engineer (Fuel) M C Gandhi.

Payment would be in rupees, not dollars, an official said, adding that they were expecting tenders from several parts of the world, including Australia and South Africa. The tenders are expected to be put up at the next Board meeting.

Incidentally, at a recent meeting in Calcutta, Bhatt had underlined the importance of a better grade coal and demanded compensation worth crores for the below-par material supplied by the coal companies.

While the claim has not been settled yet, a senior Gujarat Electricity Board officer said on condition of anonymity that it was unlikely the better quality coal promised would come very soon as the company was still setting up new mines.