Union Power Minister Stressed on Energy Crisis; leading to widespread power cuts and black outs

NEW DELHI- There are power plants designed for using high calorific value imported coal.  Therefore, the imports of coal for power generation cannot be reduced to zero. Cement, Sponge Iron, Aluminum industries utilize high calorific value low ash imported coal. The coal requirement for such category of consumers cannot be substituted by domestic coal. Thus, import of coal cannot be reduced to zero. 

In addition, thermal power plants have been importing coal for blending purpose from 2009 onwards. With the increase in electricity demand, the supply of coal to the power plants is not commensurate with the domestic coal requirement.

Read Also : IndusInd Bank Q1 FY25 results, net profit at 2% YoY

The gap between daily coal consumption and daily arrival of domestic coal ranged from 2.65 Lakh Tonnes to 0.5 Lakh Tonnes between the months of September, 2022 and January, 2023. 

If the imports for blending had not been made, the coal stocks in thermal power plants would have reduced to zero in September, 2022 and would have continued so, leading to widespread power cuts and black outs. 

Read Also : RBI issues guidelines on higher liquidity coverage ratio for retail deposits

Therefore, Ministry of Power advised Central, State Gencos and Independent Power Producers (IPPs) on 09.01.2023 to import coal through a transparent competitive procurement for blending so as to have sufficient coal stocks at their power plants for smooth operations till September, 2023.

This information was given by the Union Minister of Power Sh. R.K. Singh in the Lok Sabha.

Read Also : India assumes the Chair of Asian Disaster Preparedness Centre