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Centre allows power plants to blend imported, local coal to meet power demand

This development comes in the backdrop of some parts of states facing power outages as several power plants are running low on coal due to many factors such as low production and high import price.

Centre allows power plants to blend imported, local coal to meet power demand-dnm
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New Delhi, First Published Oct 12, 2021, 4:45 PM IST
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Amid concerns of coal shortage and power crisis across states, the Centre on Tuesday allowed power producers to expedite imports of coal to use for up to 10% of blends with the domestic grade to meet increased power demand, according to Reuters.

This development comes in the backdrop of some parts of states facing power outages as several power plants are running low on coal due to many factors such as low production and high import price.

Supply from Coal India Ltd is not commensurate with the surge in electricity consumption, leading to a change in government policy on coal imports, said the note cited by Reuters.

After the lifting of restrictions imposed due to the second wave of Covid, Asia's third-largest economy, India is facing large-scale outages as several power plants have low coal inventories amid a sharp spike in global energy prices. So far power plants that use local coal import little.

The note said supply from state-run Coal India Ltd is not commensurate with the surge in electricity consumption, leading to a change in government policy on coal imports.

Also read: Bengaluru facing major power cuts today; is your area in it?

Earlier in the day, the Ministry of Power said that it had been brought to its notice that some states were not supplying power to their consumers and imposing load shedding. At the same time, they are also selling power in the power exchange at a high price, it said.

Meanwhile, the Centre has also issued guidelines regarding the use of unallocated power of central generating stations by the states to meet the increased demand from coal-based power generation.

In case of surplus power, the states have been requested to intimate to the central government so that this power can be reallocated to other needy states, it added.

The Centre warned that if any state was found selling surplus power or not scheduling the unallocated power, their unallocated power may be temporarily reduced or withdrawn and reallocated to other states.

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