Gencos told to begin coal import process

Amid the recent power crisis scenario government has repeatedly asked states to import coal in order to ensure uninterrupted availability of power.

1 min read . Updated: 03 Jun 2022, 12:20 AM IST Rituraj Baruah

The power ministry said that in case they fail to place orders by 3 June, they will be allocated only 70% of their requirement of domestic coal

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NEW DELHI : The Centre has directed power generation companies to start the process of coal imports by Friday.

In a notification dated 1 June to state gencos, the ministry said that in case they fail to place the orders by Friday, they will be allocated only 70% of their requirement of domestic coal.

“Those GENCOS/IPPs who either do not place their indents with CIL (Coal India Ltd) by 3.6.2022 or have not initiated their tender processes for purchase of imported coal for blending purposes, they will be allocated only 70% of the quantity of domestic coal of the quantity as mentioned in the letter 18.05.2022, from 07.06.2022 and allocation will be further reduced to 60% from 15.06.2022," it said. The notification further said that the domestic coal saved on this account shall be allocated to those gencos who have already started blending imported and domestic coal.

On 18 May, the power ministry had said if orders for coal imports are not placed by 31 May, and the imported fuel does not start arriving at power plants by 15 June, the erring gencos will have to increase their imports to the extent of 15%.

The All India Power Engineers Federation (AIPEF) said that the directive is an attempt by the central government to put “undue pressure" on states. Shailendra Dubey, Chairman, AIPEF appealed to states to oppose the order.

Amid the recent power crisis, the government has repeatedly asked states to import coal in order to ensure uninterrupted availability of power. On 1 June, Mint had reported that the government may shortly initiate negotiations with Russia, Australia, Indonesia and South Africa to help state-run Coal India import coal at a discount as an emergency measure to avoid a fuel shortage at the country’s strained power plants and create buffer stocks.