Business

As crisis deepens, government sets coal import target: 10 points

May 3, 2022
Sezarr

India is facing its worst energy crisis amid scorching heat and rising demand

Even as the country is facing a severe energy crisis, 33 per cent of thermal power plants have 10 per cent or less coal stock left and they are facing difficulties in carrying it, the power ministry said. India has set a target of importing 19 million tonnes of coal. Coal to utilities by end of June

Let us take a brief look at the grim scenario facing the country in 10 points.

  1. According to a letter from the Ministry of Power, India has asked state and private sector companies to ensure delivery of 19 million tonnes of coal from abroad by the end of June.

  2. The move, which marks the first time the world’s second-largest coal importer is issuing deadlines for imports, could put pressure on global coal prices as utilities race to avoid a repeat of the power crisis in April.

  3. If the deadline is adhered to, imports in the next five months for blending with domestic coal by states and private companies will exceed annual imports by entities in at least six years.

  4. An unrelenting heatwave pushed electricity demand to a record high in April, triggering the worst power crisis in six years and forcing India to go back on a policy of cutting coal imports.

  5. The central government has asked state-owned utilities to import more than 22 million tonnes of coal and private power plants to import 15.94 million tonnes, the power ministry said in a letter reviewed by Reuters.

  6. According to a letter to top state officials, the power ministry has asked all utilities to ensure delivery of 50 per cent of the allocated quantity by June 30, 40 per cent by the end of August and the remaining 10 per cent by the end of October. Heads of the Department of Energy and private power plants.

  7. State-run utilities have not imported more than 7.1 million tonnes for the blending, and private companies have made no more than 13.1 million tonnes since at least the year ending March 2017, Reuters reported.

  8. Utilities are not bound to follow the central government’s directives, but two government officials who attended meetings related to rising power demand said states were warned of blackouts if the recommended quantities were not imported. .

  9. States and private companies should “import coal” and “ensure continuous power supply in the respective states”, the letter read.

  10. The letter showed that import targets have been given to private companies including Adani Power, Tata Power, Reliance Power, Jindal Steel & Power, Torrent Power and Sembcorp.