Coal imports by power sector rises to 39 MT in Apr-Oct FY23

New Delhi: Import of coal by the power sector has increased during the ongoing financial year and the sector imported 38.84 million tonnes (MT) of the dry fuel in April-October period, said Coal Minister on Wednesday. "Import of coal by the power sector increased during current financial year of 2022-23. As against the total import of 27 MT by power sector in entire year of 2021-22, the import of coal by power sector in the first seven months increased to 38.84 MT," said Pralhad Joshi, Coal Minister in a written reply to Lok Sabha.

However, much of the rise in import has gone to feed domestic coal-based plants, and the restoration of power generation by imported coal-based plants to its potential level has remained slow.

'Coal is kept under general license & consumers can freely import coal from any source'

As per the current import policy, coal is kept under open general license and consumers are free to import coal from the source of their choice as per their contractual prices on payment of applicable duty. The centre does not interfere in this matter.

However, the power ministry had on April 28 advised power plants to import 10 percent of the total requirement of coal for blending purpose and ensure continuous power supply in the respective states.

Coal production increases from 67.94 MT to 75.87 MT in Nov

This decision was subsequently reviewed, and it was decided on August 1 that now onward, states/independent power producers and the coal ministry may decide the blending percentage after assessing the availability of domestic supply of fossil fuel.

CIL was mandated to import coal for blending on behalf of thermal power plants of states and independent power producers.

(PSU Watch– India's Business News centre that places the spotlight on PSUs, Bureaucracy, Defence and Public Policy is now on Google News. Click here to follow. Also, join PSU Watch Channel in your Telegram. You may also follow us on Twitter here and stay updated.)