Central government tells utilities to import coal
The Hindu
It cautions States against selling electricity on exchanges
Centre has asked power producers to import up to 10% of their coal needs amid fuel shortages, and has warned States that federal companies will curb their power supplies if they are found selling electricity on power exchanges to cash in on surging prices.
India is the world’s second largest coal producer, with the world’s fourth largest reserves, but a steep surge in power demand that has outstripped pre-pandemic levels means state-run Coal India’s supplies are no longer enough.
Increased economic activity after the second wave of the pandemic has driven up demand for coal leading to a supply shortage, forcing north Indian States like Bihar and Jharkhand to undertake power cuts for up to 14 hours a day. On Tuesday, the Power Ministry asked utilities, reliant on local coal, to import up to 10% of coal needs to blend with the domestic grade to meet increased power demand, a Ministry note reviewed by Reuters said. The move could push up already high global coal prices.
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