Imported coal-based power units to run at full steam till Dec 31

New Delhi: The Centre has extended the direction for imported coal-based power plants to run at full capacity till December 31, two senior government officials said. This would ensure adequate capacity amid the continued rise in power demand, said a third official.

The power ministry's earlier direction to thermal plants using imported coal to operate at full capacity was in force till October 15. Section 11 of the Electricity Act states that the government may, in extraordinary circumstances, ask a power generation company to operate and maintain any station in accordance with its directions. There are 15 such plants in the nation, including Tata Power's Coastal Power Gujarat, Adani Power Mundra, Essar Power Gujarat and JSW Ratnagiri.

The power ministry, meanwhile, has not extended the advisory for blending of imported coal for power units, the senior officials said, adding that blending of the fuel will now be on an "as-required basis". However, there may be another meeting in mid-November to review the need for blending, one of the persons said.


Both decisions come after an inter-ministerial meeting last week to decide the supply of domestic coal at power plants for the second half of the fiscal.

In June, the government had asked domestic coal-based thermal power producers to continue blending imported fuel till October 15, but it reduced the proportion of blending to 4% from 6%. Coal stocks at plants, though depleted in the previous quarter, have been close to anticipated levels, as per officials. As on October 14, it was around 34.5 million tonnes (MT), including 3.5 MT at imported coal-based plants and the rest at domestic coal-based units.

Coal stock depletion
The depletion of coal stocks at power plants in the last quarter was around 21%, mainly on account of a seasonal drop in coal evacuation and transport and also due to a drop in wind power generation for some time during the period, which increased the use of coal-based power, according to government data and industry executives. However, the depletion of coal stocks in the first quarter, coinciding with high summer demand, was around 7.8%.