The Ministry of Power in India has extended the deadline for blending imported coal for domestic thermal power plants to June from March, citing an expected rise in peak power demand to 250 GW during April 2024-June 2024. This extension comes amid logistical constraints related to railway networks, expected to impact domestic supplies in the coming months.
To meet the anticipated power demand during the crucial summer months, the ministry emphasized the need for adequate reserves in domestic thermal power plants across central and state generation companies, as well as independent power producers. All generation companies have been directed to solidify their imported coal contracts for supplies until June and continually review stock levels at domestic plants.
This extension follows a previous move in October 2023, where the ministry extended the timeline for blending imported coal at a minimum of 6% until March 2024 due to depleting coal stocks at domestic coal-based plants nationwide. During September 1-October 9, 2023, the gap between receipt and consumption of coal (domestic plus equivalent imported coal) was approximately 12 million tonnes (mnt).
Moreover, a notable 11% decline in hydro generation in H1FY24 was observed due to variable monsoon rainfall. Furthermore, in October 2023, the government extended the timeline for imported coal-based power plants to operate at full capacity until June 2024 under Section 11 of the Electricity Act 2003.