Govt asks Coal India to be ready to import 12 million tonnes of coal

According to industry experts, the government is making all efforts to build up stock of coal to avoid the reoccurrence of power outrages which happened in April

Fossil Fuel, Coal
In April, several parts of the country witnessed power outrages on account of coal shortages. Photo: Bloomberg
Press Trust of India New Delhi
2 min read Last Updated : Jun 04 2022 | 1:26 AM IST

The government has directed state-owned CIL to be prepared to import 12 million tonnes (MT) of coal for power utilities for the next 13 months.

The state gencos and independent power producers have sought time till Saturday afternoon to figure out the quantity of coal they require and the import orders would be placed by Coal India very soon, a source said.

It would be the first time since 2015 that the maharatna firm imports the dry fuel.

"Government of India has mandated Coal India to be ready to import 12 million tonnes of coal for July this year to July 2023," the source added.

A query sent to the company in this regard did not elicit any immediate response.

According to industry experts, the government is making all efforts to build up stock of coal to avoid the reoccurrence of power outrages which happened in April on account of shortage of the fossil fuel.

On May 18, the Ministry of Power had warned that if orders for coal imports are not placed by May 31, 2022 and the imported fuel does not start arriving at power plants by June 15, the defaulter gencos will have to increase their imports to the extent of 15 per cent.

Further, if blending with domestic coal is not started by June 15, then the domestic allocation of the concerned defaulter's thermal power plants will be further reduced by 5 per cent, the ministry had said in a letter to state governments and power generation companies (gencos), including independent power producers (IPPs).

In April, Coal Secretary A K Jain had attributed the low coal stocks at power plants to several factors such as heightened power demand due to the boom in the economy post-COVID-19, early arrival of summer, rise in the price of gas and imported coal, and sharp fall in electricity generation by coastal thermal power plants.

In April, several parts of the country witnessed power outrages on account of coal shortages.

He had said a lot of measures are already underway to enhance the total power supply in the country.

Gas-based power generation, which has fallen drastically in the country, has aggravated the crisis, he had said.

(Only the headline and picture of this report may have been reworked by the Business Standard staff; the rest of the content is auto-generated from a syndicated feed.)

Subscribe to Business Standard digital and get complimentary access to The New York Times

Quarterly Starter

₹900

3 Months

₹300/Month

SAVE 25%

Smart Essential

₹2,700

1 Year

₹225/Month

Save 46%

Super Saver

₹3,900

2 Years

₹162/Month

Subscribe

Renews automatically, cancel anytime

Here’s what’s included in our digital subscription plans

Access to Exclusive Premium Stories Online

  • Over 30 behind the paywall stories daily, handpicked by our editors for subscribers

Complimentary Access to The New York Times

  • News, Games, Cooking, Audio, Wirecutter & The Athletic

Business Standard Epaper

  • Digital replica of our daily newspaper — with options to read, save, and share

Curated Newsletters

  • Insights on markets, finance, politics, tech, and more delivered to your inbox

Market Analysis & Investment Insights

  • In-depth market analysis & insights with access to The Smart Investor

Archives

  • Repository of articles and publications dating back to 1997

Ad-free Reading

  • Uninterrupted reading experience with no advertisements

Seamless Access Across All Devices

  • Access Business Standard across devices — mobile, tablet, or PC, via web or app

More From This Section

Topics :coal importCoal IndiaCILpower companies

First Published: Jun 04 2022 | 1:26 AM IST

Next Story