India had asked power companies to import 10% of its total requirements, or about 38 million tons, to mix with local coal, as demand exceeded supply, adding that the delivery of 19 million tonnes was to be secured before the end of June.
However, in a May 18 letter to the Secretary of the Central Electricity Regulatory Commission (CERC), an official of the Federal Ministry of Energy, citing a “public interest” provision of India’s Electricity Act electricity, said it was “imperative” that power producers be allowed to use more imported coal.
The demand to allow more imported coal reflects the severity of the national shortage, which has caused the country’s worst power cuts in more than six years, as a heat wave blankets large swaths of South Asia .
“In the public interest, CERC is requested to immediately authorize the blending of imported coal up to 30%, in accordance with the decision of the Minister of Energy, without consultation with the beneficiaries until March 31,” the letter said. .
It was not immediately clear whether the beneficiaries meant the electricity distribution companies or the final consumers. The electricity ministry did not immediately respond to a request for comment.
The power ministry official said CERC had refused permission to import some state government-run utilities because the quantity could potentially breach rules that prohibit producers from blending imported coal. above a certain level without the consent of the beneficiaries.
“There is an urgent need to save domestic coal to build up reasonable coal stocks at power stations ahead of the monsoon,” the official said in the letter, adding that stocks at power stations were running out at a “worrying” rate.