New Delhi: In order to meet an increase in demand and consumption of electricity over the coming monsoon season, the Centre on Wednesday asked the chief ministers of Haryana, Uttar Pradesh, Karnataka and West Bengal to push coal imports for power generation companies, according to an official release.
“The share of coal-based generation has increased and the total coal consumption by power plants has also increased. You may ask the state generation companies to take immediate steps to import coal for blending in order to meet their requirement during monsoon season,” Union Minister of Power R K Singh said in his letter to the chief ministers. The power minister expressed concern that the tender process for coal import has either not started or not completed in the four states.
According to officials, in 2018-19 a total of 21.4 million tonnes of coal was imported for blending. In 2019-20, the total import for blending was 23.8 million tonnes whereas, in 2021-22, it was only 8.3 million tonnes.
“This is the cause of the stress in the availability of coal,” said an official, adding that the power ministry had earlier advised the state power generation companies to import 10 percent of coal requirement for blending purposes. The states were advised to place orders by May 31 so that delivery of 50 percent quantity is ensured by June 30. 40 percent August 31 and remaining 10 percent October 31.
In his letter to the CMs, the union power minister further said that the state power generation companies may lift the entire quantity of coal offered under the RCR mode expeditiously to build stocks. He stressed that in case of failure on either account, it would not be possible to give additional domestic coal to make up the shortfall.
The minister cautioned the states that if the present state of affairs continues, it may lead to shortage of coal in states during the monsoon, adversely affecting the power supply situation there. In such a situation, the minister said if RCR allocation is not lifted, it will be allocated to other needy state generation companies.
Noting that materialization of domestic coal is only about 88 percent of total requirement, the minister also directed the thermal power plants owned by state Gencos and IPPs to use all the sources to maintain adequate coal stock before the onset of monsoon.
The power ministry also issued directions to all the Gencos that if the orders for import of coal for blending are not placed by May 31, and if the imported coal for blending purpose do not start arriving at the power plants by June 15, all the defaulter Gencos would have to import coal for blending purpose to the extent of 15 percent in order to meet the shortfall till October.
Noting that not much blending has taken place in the months of April and May, the ministry has asked the state Secretaries/Principal Secretaries and all Gencos that keeping in view the likely less materialization of coal supply from domestic sources as compared with the requirement to meet power demand, domestic coal will be allocated proportionately to all Gencos based on likely availability from June 1.
The balance requirement will need to be met from imported coal for blending purpose and target set for production in captive coal mines, the Centre said, adding that all Gencos have been advised to ensure adequate stocks at their power plants for smooth operation until October.
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