India has asked its federal electricity regulator to allow power generators to import up to 30% of the country’s coal requirement by March next year, according to a power ministry letter seen by Reuters.
India had asked utilities to import 10% of its total requirement, or about 38 million tonnes, to be blended with local coal as demand exceeded supply, adding that 19 million tonnes would be delivered at the end of June. was to be ensured.
However, in a letter dated 18 May to the Secretary of Central Electricity Regulatory Commission (CERC), a federal power ministry official cited a “public interest” provision in India’s electricity law to say it “mandatory” power producers should be allowed to use more imported coal.
Demands to allow more imported coal reflect the severity of domestic shortages, which have caused the country’s worst power cuts in more than six years, as heatwaves raged across vast regions of South Asia.
“In public interest, CERC is directed to allow blending of higher quantities up to 30% with imported coal in compliance with the decision of the Ministry of Power without consultation with the beneficiaries by March 31,” read the letter.
It was not immediately clear whether beneficiaries meant power distribution companies or end consumers. The power ministry did not immediately respond to a request for comment.
The power ministry official said CERC had refused permission to import some state government-run utilities, as the quantity could potentially violate regulations that mix imported coal to some extent without the consent of the beneficiaries. Prohibit the generator from doing so.
“There is an urgent need to save domestic coal to create proper coal stock in power plants before monsoon,” the official said in the letter, adding that power plant inventories were depleting at an “alarming” rate.
This story has been published without modification in text from a wire agency feed. Only the title has been changed.