Amid power crisis, Coal India to import fuel for first time in seven years: Report

Government-run Coal India, the largest producer of coal in the world, is all set to import coal for the first time in seven years, amid the power crisis in the country, the Power Ministry has said as reported by Reuters.

“Coal India would import coal for blending on government-to-government (G2G) basis and supply…to thermal power plants of state generators and independent power producers (IPPs),” a letter by the Power Ministry on May 28 said.

The ministry has sent the letter to all power plants, as well as senior central and state energy officials including the coal secretary and chairman of Coal India.

The ministry said it arrived at the decision after almost all states pitched for a centralised import of coal through Coal India, while reasoning that multiple import tenders would create confusion.

The decision also comes when the country is expected to face acute coal shortage in the third quarter of 2022 due to high demand for power, which further may lead to power cuts.

The Centre had earlier asked power utilities to import coal to supplement local coal reserves while warning of cuts to supply of domestically mined coal if plants did not stock up on coal through sufficient imports. The power ministry, however, has now asked states to hold tenders that are under process.

“The tenders under process by state generators and IPPs for importing coal for blending may be kept in abeyance to await the price discovery by Coal India through G2G route, so as to procure coal at least possible rates,” the ministry said in the letter.