Despite India's increasing power demand, coal import for blending decreased substantially by 46.57 percent to 13.57 million tons (MT) between April and October, compared to 25.4 MT in the corresponding period of FY23, the Ministry of Coal said on November 29.
India is the world's third-largest consumer of energy, with an annual electricity demand increase of about 4.7 percent. Amid record-breaking demand, the country witnessed an 8.18 percent surge in overall power generation from April to October, compared to the same period of the previous year. This includes all forms of power generation - thermal, renewable and so on.
Coal-based power generation witnessed an 11.16 percent increase during the April-October period compared to last year. This includes power generation from imported as well as domestic coal.
Taking cognisance of a coal shortage at thermal power plants in September-October, the Ministry of Power on October 25 directed all thermal generating stations, including Independent Power Producers (IPPs), to mandatorily blend imported coal at 6 percent of their total capacity till March 2024. The mandate was earlier limited to blending at 4 percent.
The government has also extended the emergency clause (Section 11) of the Electricity Act, 2003, mandating imported coal-based power plants to run on their full capacity till June 30, 2024.
Coal-fired power generation had to be increased due to the unprecedented rise in temperature, delayed monsoons in the Northern region of the country which affected hydropower generation. The resultant increase in power demand due to the resumption of full commercial activities post-Covid had to be met in the absence of energy storage solutions for renewable energy.
Data from the Ministry of Coal showed that domestic coal-based power generation from April to October, 2023 reached 686.7 billion units (BU), reflecting an 8.88 percent increase from the 630.7 BU generated in the corresponding period last year.
"The government persists in its efforts to further enhance coal production, aiming to increase availability and reduce dependence on imported coal, thereby safeguarding foreign reserves," the ministry said in a statement.
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