Coal news and updates

Centre asks gencos to import 6 per cent of total coal requirements

The ministry’s letter stated  energy demand has increased sharply and it is expected to remain at increased level during first half of 2023-24.

NEW DELHI:  Government has asked power generation companies (gencos)  to import 6% of their coal requirements until September 2023. As per reports, power ministry warned them if import target is not met, domestic supplies could be curtailed.

The ministry’s letter stated energy demand has increased sharply and it is expected to remain at increased level during first half of 2023-24. Estimated domestic coal supply of 392 million tonnes during the six months to the end of September is expected to fall short of demand by 24 million tonnes, according to the letter sent to heads of energy departments of states and managing directors of all utilities.

Last year, citing shortage of domestic coal supply in the country, the coal ministry asked state governments and power-generating companies (gencos) to import coal. The ministry has warned these companies if they do not import coal for 10% blending in their fuel demand by the end of this month, the blending benchmark would be increased to 15%.

“If the orders for import of coal for blending are not placed by gencos by 31.05.2022 and if the imported coal for blending purposes do not start arriving at the power plants by 15.06.2022, all the defaulter gencos would have to import coal for blending purpose to the extent of 15 per cent in the remaining period upto 31.10.2022,” said the directive. Currently, coal accounts for over 70% of the country’s power generation.