Govt extends mandatory blending of imported coal in thermal power plants till June 2024

thermal power plants

The Ministry of Power has asked all generating companies to continue blending imported coal in thermal power plants till June 2024 instead of March.

“In order to meet the power demand during the crucial summer months and to ensure uninterrupted power supply across the country, adequate coal reserves in domestic coal-based (DCB) plants need to be maintained by all the Central/ State Gencos and independent power producers (IPPs). The Ministry of Power has, therefore, decided to extend the advisory dated October 25, 2023 till June 2024,” the Ministry of Power said in an order issued on March 4.

The blending percentage of imported coal for DCBs has been retained at 6 percent, the Ministry said.

It added that the decision was taken after the status of power supply position was reviewed and as per the projections, the peak demand in India is likely to reach at least 250 GW in the summer season (April-June, 2024).

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"It has been further observed that despite the increase in loading of domestic coal rakes, the supplies of domestic coal will remain constrained due to various logistical issues associated with railway network," the order stated.

The government is anticipating a peak power demand of 256.53 GW (256,530 MW) in 2024. Last year (2023), it had projected a peak power demand of 230 GW, but in reality, the demand soared to an unprecedented 240 GW instead. The unusual surge in demand also resulted in an alarming spike in the country's power shortage, recorded at 10.745 GW (10,745 MW) on the same day (September 1).

However, on March 4, Central Electricity Authority (CEA) chairperson Ghanshyam Prasad said the peak power demand this year could even hit the 260 GW mark. "We expect the peak power demand this year (in summers) at 260GW," Prasad told reporters on the sidelines of the fourth edition of Lineman Diwas in Delhi.

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The latest rule will have to be followed by all domestic coal based thermal power plants - Central, state gencos and independent power producers (IPPs).

While issuing the order, the Ministry asked all gencos to firm up their imported coal contracts for ensuring supplies till June, 2024. "Further, gencos must also continuously review the stock positions of their DCB plants and opt for blending as per requirements so that adequate coal stocks are maintained at the TPP level," it added.