States should be asked to ensure timely import of coal: Power Minister

Union Power Minister RK Singh has asked the power generating companies to ensure timely import of coal to meet the requirements of several states to meet the requirements during the monsoon season.

According to the Ministry of Power, all Genco (power generating companies) have also been instructed to place import orders on time.
The ministry clarified that if coal import orders are not issued by May 31, 2022 and imported fuels do not start arriving at power plants by June 15, defaulting Gencos will have to increase their imports by 15 per cent.

The ministry had earlier advised the state Gencos to import 10 per cent of their required coal mixture. States were advised to place orders by May 31, 2022 to ensure 50 percent supply by June 30, 2022.

“Power and New and Renewable Energy Minister RK Singh has written to the states that the states may be asked to take immediate steps to import coal to meet their needs during the monsoon season.”

In separate letters to Haryana, Uttar Pradesh, Karnataka and West Bengal, he expressed concern that the tender process for importing coal in these states had not started or ended, the power ministry said in a statement on Wednesday.

The Minister further said that the state Gencos could quickly extract the entire amount of coal supplied under RCR mode to create coal reserves. In case of failure in both the accounts, it will not be possible to provide additional domestic coal to meet the deficit.

“If the RCR (rail-cum-road) allocation is not raised, it will be allocated to other needy state jenkos, and if the current situation continues, there could be coal shortages in the states during the monsoon season, which could adversely affect power supply. The situation in the state, “Singh said.

Due to high demand and use of electricity, the share of coal-based production has increased and the total coal consumption of power plants has also increased. He added that the materialization of domestic coal is about 88 per cent of the total requirement.

In a separate statement, the ministry said that instructions have been issued to all Genco, including the Independent Power Generator (IPP), to import coal in a timely manner for the purpose of blending.

“There was not much mixing in April and May 2022. Power plants that have not yet started mixing will ensure that they will mix coal at 15 per cent by October 2022 and then at 10 per cent. From November 2022 to March 2023 per cent,” the ministry said. .

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