Power Ministry asks imported coal-based plants to run at full capacity till Oct 15

New Delhi: The Ministry of Power has asked all thermal plants using imported coal to operate at full capacity for another three and a half months till October 15 to avoid electricity shortage amid rising demand in the country.

The ministry has projected peak power demand of 260 GW during the summer season (April to June) in view of longer heat wave duration. Peak power demand had touched all-time higher of 243 GW in September 2023.

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The India Meteorological Department (IMD) has predicted above-normal maximum temperatures in most parts of the country during summer this year.

A power ministry notice to 15 imported coal-based thermal power projects on April 12 stated, "It has now been decided to extend the time period for Section 11 directive to generating companies having imported coal-based plants, up to October 15, 2024."

In October 2023, the ministry extended the deadline for these imported coal-based plants to operate at full capacity from November 1, 2023 to June 30, 2024.

In February 2023, the ministry had invoked Section 11 of the Electricity Act 2003 to avoid any outage due to a sudden rise in power demand. The direction was for three months from March 16 to June 15, 2023, which was extended till September 30, 2023 and later till October 31, 2023.

In October, the duration for running these imported coal based power plants at full capacity was further extended till June 30, 2024. Peak power demand was estimated to touch a record high of 229 GW during summer in 2023.

However, unseasonal rains affected demand as people used fewer cooling appliances like air conditioners which guzzle electricity.

The 15 imported coal-based (ICB) power plants that have been directed to run their plants at full capacity include Tata Power and Adani Power's plants at Mundra in Gujarat; Essar power plant in Salaya; JSW Ratnagiri; Tata Trombay; Udupi Power; Meenakshi Energy; and JSW Torangallu.

The Ministry has been saying that in the likely scenario of a gap in demand and supply of domestic coal and essential requirement of maintaining coal stock at generating stations, the use of imported coal needs to be increased by way of blending with domestic fuel in domestic coal-based plants and also by ensuring optimum generation from ICB plants.

This will ease the pressure on domestic coal supply and also ensure that all plants are available during the peak demand period, it had noted.

The ministry has provided for pass through of higher cost of imported coal as well as the provision of sale of excess power in exchanges.

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