Centre annuls condition for states to import coal

"After reviewing, the position of state Gencos now varies significantly. Many states have stocks more than 50 per cent of normative levels whereas many others still have stocks near critical levels."

Published: 03rd August 2022 11:15 AM  |   Last Updated: 03rd August 2022 11:15 AM   |  A+A-

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Express News Service

CHANDIGARH: The Centre has withdrawn the mandatory condition to import coal from abroad for 10% blending in thermal power plants of the country, allowing states and UTs to decide their own blending percentages.

Punjab has already spent about Rs 275 crore and Haryana about Rs 1,650 crore after placing orders to buy imported coal. This government direction came in a letter issued on Monday by the Power Ministry to the governments in states and MDs of state-owned power generating companies (Gencos) and independent power producers (IPPs).

"The coal stock position has been reviewed. The position of state Gencos now varies significantly. Many states have stocks more than 50 per cent of normative levels whereas many others still have stocks near critical levels. It has been decided that now onwards, states/IPPs and Ministry of Coal may decide blending percentage after assessing the availability of domestic coal supplies,’’ says the letter. 

Earlier, the All India Power Engineers Federation (AIPEF) had asked the Centre not to force states to buy imported coal due to its high cost. Last Month AIPEF chairman Shailendra Dubey had said that the federation had written to the Prime Minister urging him to intervene and issue effective directions to the Power Ministry to immediately withdraw the instructions given to state gencos to import 10% of coal. AIPEF spokesperson V K Gupta said Punjab had placed orders for 1.50 lakh tonnes of imported coal worth about Rs 275 crore and Haryana had ordered 9 lakh tonne worth Rs 1,650 crore. 

New direction
This government direction came in a letter issued on Monday by the Power Ministry to the state governments and MDs of state-owned power generating companies (Gencos) and independent power producers (IPPs)
 



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