Coal India, the world’s largest coal miner, will import the fuel for usage by utilities, as shortages increase fears of additional power disruptions, said in a power ministry letter on Saturday.
The state-run business will be importing the fuel for the first time since 2015, emphasising attempts by state and federal officials to stockpile in order to avoid a repetition of April, when India had its worst power outages in more than six years.
‘Coal India would import coal for blending on government-to-government (G2G) basis and supply … to thermal power plants of state generators and independent power producers (IPPs)’, the federal Power Ministry said in the letter dated May 28.
The letter was issued to all utilities, as well as important federal and state energy executives, such as the federal coal secretary and Coal India’s chairman. Due to projections of rising energy consumption, India is anticipated to confront a greater coal scarcity in the third quarter of 2022, sparking worries of widespread power disruptions.
As per the electricity ministry’s letter, the decision was made after virtually all states expressed concern that numerous coal import auctions would cause confusion and asked for centralised procurement through Coal India.
In recent days, India increased pressure on utilities to increase coal imports to mix with domestic coal, threatening supply cuts if power plants did not build up coal stockpiles through imports. However, on Saturday, the electricity ministry requested that states postpone tenders that are in progress.
‘The tenders under process by state generators and IPPs for importing coal for blending may be kept in abeyance to await the price discovery by Coal India through G2G route, so as to procure coal at least possible rates’, the ministry said.
Coal stocks at power plants have dropped by approximately 13% since April, to the lowest levels seen in years before the summer.
Post Your Comments