Govt tells TPPs to continue blending 4% imported coal until October 15

New Delhi: The government has asked coal-based thermal power plants (TPPs) to brace for monsoon and continue blending imported coal until October 15. While the directive issued in March by the Ministry of Power for coal import asked TPPs to blend 6 percent imported coal, the current directive reduces the quantity to 4 percent. A letter sent by the Power Ministry to all Central and state power generating companies (GENCOs) and Independent Power Producers (IPPs), dated June 27, said, “In order to meet the power demand during the crucial monsoon months and to ensure uninterrupted power supply across the country, adequate coal reserves in domestic coal-based plants (DCBs) need to be maintained by all the Central/State GENCOs and IPPs. The Ministry of Power has therefore decided to extend the advisory dated 04.03.2024 by modifying the blending requirement to 4 percent (by weight) till 15.10.2024.”

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The position of coal stocks at thermal power plants was recently reviewed at a meeting held on June 13, chaired by Minister for Power Manohar Lal Khattar.

Why do TPPs need imported coal blending?

Firstly, despite increased domestic coal production, there continues to be a gap between the daily coal consumption at thermal power plants and the domestic coal received by them. “… although there is a significant improvement in rake loading as well as receipt of domestic coal in Q1 of FY25 compared to Q1 of FY24, there is still a gap between receipt and consumption of coal at the level of domestic coal-based plants (DCB) of around 130,000 tonnes per day. This gap is partly made up with the import of coal,” said the Power Ministry.

Secondly, the transportation of coal gets impacted during monsoon. “It is also pertinent to note here that historically, due to various logistical issues, the domestic coal supply declines during monsoons. This year also, while the average rake loading in Q1 till date is around 432 rakes per day, Railways have informed about the likely availability of around 403 rakes per day in Q2,” said the ministry.

TPPs within 200-Km radius of linked coal mine need not import coal

The Ministry of Power also said that the directive will not apply to domestic coal-based plants which are situated within a radius of 200 Km of the linked coal mine or source. However, it added that GENCOs must firm up their imported coal contracts for supplies until October 15, while continuously reviewing the coal stock position at their plants and opting for blending as per requirements.

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