Acting on the shortage, the Ministry of Power on October 25 directed all thermal generating stations, including Independent Power Producers, to mandatorily blend imported coal at 6 percent of their total capacity till March 2024. Until now, the mandate was limited to 4 percent.
The eight-month long extension has been directed by the Ministry of Power owing to a surge in electricity demand, inadequate supply of domestic coal and reduced hydropower generation.
Unusual weather conditions have extended the hot months into August-September, causing a strain on the power generating resources of the country. The government has made policy adjustments to meet the shortfall in supply.
Coal ministry data showed that there has been a significant 53.13 percent decline in the import of thermal coal for domestic coal-based power plants for blending from 19.2 million tons (MT) in April-August, 2022 to 9 MT in April-August, 2023.
Coal has been contributing about 70 percent to India's total energy mix, while pure renewable energy sources hover around 9 percent.
The power demand breached the 200 GW-mark after 20 days. Last it was on April 21, when the demand met was 204.7 GW.
Unless there is a drastic change in the weather, India's peak power demand is likely to again cross 200 GW in a day or two, officials said.
The hike in coal prices, if approved by the CIL Board, could result in an increase in power tariffs by up to 3.5 percent, experts said.
The govt will reimburse GST on cost of coal, offer 10% capital subsidy on setting up coal gasification plants, and assure coal supply at a notified price for 15 years.
The dues owed to CIL have increased by almost 25 percent compared to last year. It is crucial to make prompt payments to the coal sector to guarantee a continuous supply of this fossil fuel to thermal power plants, particularly as India prepares for peak summers and the demand for power is anticipated to reach 230 GW.
The Union power minister also informed the Upper House that Railways has taken steps to purchase one lakh wagons for coal transportation
As per the tender document reviewed by Moneycontrol, the last date for submission of bids is March 23. The minimum guaranteed offtake during the identified crunch period shall be 1209.6 MU. Any offer of less than 50 MW by a bidder will result into non- responsiveness of bid, it stated.
During a review meeting held on March 7, Union minister for power RK Singh asked electricity companies to ensure there is no load-shedding during the summer months.
In November, the coal ministry in a statement said it would augment coal supplies at TPPs to 45 million tonnes by March-end. However, data showed that maximum coal stock at TPPs hasn’t crossed 31-32 million tonnes so far. Also, logistics around coal supply will continue to be a major bottleneck, despite increase in coal production as well as railway lines for its transportation.
On January 9, 2023, Moneycontrol first reported that the previous such order under Section 11 of the Electricity Act lapsed on December 31, 2022, after being extended from October 31, 2022. The latest order would mean at least 15 ICBs will have to operate at their full capacity until further notice.
The government is preparing to meet a projected peak electricity demand of 230.144 gigawatts (GW) in FY 2024.
It is noted that the shortfall between the daily coal consumption and the daily arrival of domestic coal is ranging from 3 Lakh Tones per day to 1 Lakh Tonnes per day, the ministry said.
India’s power demand hit an all-time high of 210.8 gigawatts earlier this month
The coal supply by the PSU to the sponge sector also dropped 8.74 per cent year-on-year in May. However, supply to the steel sector went up by 67.83 per cent and to the power sector increased by 19.48 per cent last month, over May 2021.
Domestic power producers have time till Friday to place orders for import of coal, failing which they will be allocated only 70 per cent of their requirement by the government, according to an official notification.
" For the two years as coal secretary, I did not convene a single meeting in Delhi. I used to travel to each state where coal exists once in two months to engage with the chief secretary, senior officers and with all the district magistrates on video conference, and discuss the big issues relating to land acquisition and forest and environment clearance."
"Both coal companies and railways have envisaged to jointly ensure per day coal loading of 415 rakes of domestic coal and 30 rakes of imported coal to power sector," the railways said in a statement.
As per data presented by CEA in the meeting, it was noted that the states of Tamil Nadu and Maharashtra have placed orders for the import of coal, while Punjab and Gujarat are in an advanced stage of finalising the tenders.
India’s power demand hit an all-time high of 207.1 gigawatts (GW) on April 29, driven by the increase in demand from households amid heatwaves and a pick-up in industrial demand.
On May 1, around 42 passenger trains were canceled to allow faster movement of coal carriages to restock power plants across India running low on the fuel amid blackouts and outages in many states