The Ministry of Power vide its notification dated 5th May 2022, has directed all states and gencos based on domestic coal to import at least 10% of their requirement of coal for blending and meet the growing demand for electricity. This order shall remain valid up to 31st October 2022.
The following directions are issued under section 11 of Electricity Act 2003:
- All imported coal based power plants shall operate and generate power to their full capacity, where the imported coal based plant is under NCLT, the resolution professional shall take steps to make it functional.
- These plants will supply power in the first instance to the power purchase agreement (PPA) holders. Any surplus power left thereafter or any power for which there is no PPA will be sold in the power exchanges.
- Where the plant has PPA with multiple DISCOMs then in such cases, if one DISCOM does not schedule any quantity of power according to its PPA, that power will be offered to other PPA holders and any remaining quantity thereafter will be sold through the power exchanges.
- Where the generators/group companies own coal mines abroad, the mining profit will be set off to the extent of the shareholding of the generating/group company in the coal mine.
- The PPA holders shall have an option to make payment to the generating company according to the bench mark rate worked out by the group or at a rate mutually negotiated with the generating company.
