The Ministry of Power (MoP) has extended its coal import advisory for Domestic Coal-Based power plants (DCBs) to ensure sufficient fuel reserves during the monsoon season. This advisory was issued on June 27, 2024.
It may be recalled that MoP had first issued an advisory dated October 25, 2023 mandating 6% coal blending with imported coal. This advisory was then extended by a subsequent advisory issued on March 4, 2024. Now by the present notification, this directive is being extended until October 15, 2024, with a revised blending requirement of 4%.
Reasoning for Extension
India’s power demand is rising, with a record peak of 250 GW reached in May 2024.
Despite an increase in domestic coal supply compared to the last fiscal year, a daily coal receipt and consumption gap of 130,000 tonnes persists at DCB plants. Imports partially bridge this gap.
Historically, monsoon rains disrupt domestic coal transportation, potentially reducing rake availability. Railways anticipate an average of 403 rakes per day in Q2 (July-Sept), compared to 432 rakes per day in Q1.
Ensuring Uninterrupted Power Supply
Maintaining adequate coal reserves at DCBs is crucial for uninterrupted power supply during the monsoon months. The revised advisory aims to achieve this by encouraging continued coal imports for blending.
Therefore, Generating Companies (GENCOs) are required to:
- Secure imported coal contracts through October 15, 2024.
- Continuously monitor DCB plant coal stock levels and adjust blending practices to maintain adequate reserves at thermal power plants.
Exceptions
It is pertinent to note that the blending directive does not apply to DCB plants located within 200 kilometers of their linked coal source.
