FCC

Government rolls back mandate on coal import order

2022-08-16

The government has reversed an emergency order requiring power plants to import 10% of their coal requirements and blend it with domestic supply. The withdrawal of the mandatory blending order indicates that power plants have sufficient stocks before the annual increase in coal demand following the monsoon, when electricity demand increases. Data showed 31 million tonnes of coal stock at power plants, including 2.5 million tonnes of imported coal, which was among the highest in August in any year. The coal blending order, issued on May 26 under Section 11 of the Electricity Act, required the use of 10 per cent imported coal and provided adequate compensation to 32 GW of domestic coal-based power projects until March of next year.

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