Power Plants Requested 4 Percent Coal Imports Until March Of The Next Year
Power Plants Requested 4 Percent Coal Imports Until March Of The Next Year: In order to assure enough availability of the commodity in light of a rising demand for electricity in the nation, the Centre has ordered all power generating companies to import 4% coal India by March 2024, according to sources familiar with the issue.
The purchase of pricey foreign coal will increase the cost of power production, which could lead to a higher tariff for end consumers, according to Uttar Pradesh, which has been defying the Centre’s directives for a year.
A senior energy department official stated, “We have once again received instructions from the Center to import coal. We will soon refer the matter to the state administration.
In its directions to all governmental and private thermal energy producers on September 2, the Union Power Ministry stated that the mixing of imported coal was necessary to assure the commodity’s supply in thermal plants given that the country’s demand for electricity was expanding rapidly.
“It has been noted that the domestic coal supply, despite growing during Q1 of FY 23–24, fell short of fulfilling the demand. About 2 lakh tonnes per day’s worth of domestic coal was not received by domestic coal-based (DCB) plants in August. With the import of coal, the gap was somewhat closed. The ruling noted that without that, the coal supplies would have decreased to dangerous levels.
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The ministry added that the necessity to continue using imported coal for blending emerged because of the situation where energy consumption was rising and coal supply was not keeping up with the demand.
State GENCOs and IPPs have been ordered to take the necessary steps or make the necessary plans to import coal for blending at a rate of 4% (by weight) through a transparent, competitive bidding process through March 31, 2024, in order to have adequate coal stockpiles at their power plants for efficient operation, it added.
In response, the All-India Power Engineers Federation (AIEF) questioned the most recent government directive and urged that the Central government foot the bill for the importation of the coal used by generators.
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AIPEF chairman Shailendra Dubey said here on Monday that the order from the Union Power ministry is crystal clear that the main cause for the difficulties in the coal reaching power plants from the mines is owing to shortage of rakes and other logistical constraints on part of the Railways.
He continued that there might also be a problem with the shipping of imported coal in such circumstances.
In this case, the central government should pay for the cost of the imported coal. Dubey emphasized that if the government does not pay, the cost will be collected from discoms and will ultimately fall on the general public, which would be unfair.
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