coal supply, power, energy, mining

Coal India Imports for First Time in Years with Power Shortage – Business Standard

An Electricity Ministry letter seen by Reuters on Saturday showed the state’s Cole India, the world’s largest coal miner, will import fuel for utilities, as shortages raise concerns about renewed blackouts.

It will be the first time since 2015 that Coal India has imported fuel, highlighting efforts by state and federal officials to hoard to avoid a repeat of April, when India faced its worst blackout in more than six years.

“Coal India will import coal for blending on a state-to-government basis to the government (G2G) and supply it… to state generator thermal power plants and independent power producers (IPPs),” the Federal Energy Ministry said in the letter dated May 28. .

The message was sent to all utilities, and top central and state energy officials, including the federal coal minister and Coal India’s chairman.

India is expected to face a wider shortage of coal during the third quarter of 2022 due to expectations of higher electricity demand, which has raised fears of widespread power outages.

In the letter, the Ministry of Electricity said the decision was taken after almost all states indicated that multiple tenders for coal imports by countries would lead to confusion and seek centralized procurement through Coal India.

India has stepped up pressure on utilities to increase imports to mix with domestic coal in recent days, warning of reducing domestically mined coal supplies if power plants do not accumulate coal stocks through imports.

But the Ministry of Electricity on Saturday asked countries to suspend tenders “in progress”.

“Tenders being processed by state generators and IPPs to import coal for blending may remain pending pending price discovery by Coal India via the G2G route, in order to procure coal at at least probable prices,” the ministry said.

Coal stocks at power plants have fallen about 13% since April to their lowest pre-summer levels in years.

(This story has not been edited by Business Standard employees and is automatically generated from a shared feed.)

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