New Delhi

Power Ministry on Thursday advised all Gencos, including independent power producers (IPPs), to procure imported coal at 4 per cent of their cumulative requirement for blending till October 15, 2024 as domestic supplies via railway rakes will face disruptions due to monsoons.

In its March 2024 order, the Ministry had asked Gencos to continue importing coal at 6 per cent for blending with domestic coal till June 30.

Power Minister Manohar Lal Khattar reviewed the coal stock position at domestic coal based (DCB) plants on June 13, where it was observed that power demand in the country is witnessing a robust growth. Recently, the highest ever peak demand of 250 gigawatts (GW) was observed in May 2024, the Ministry said in the advisory.

Although there is significant improvement in rake loadings as well as receipt of domestic coal in Q1 FY25 against Q1 FY24, there is still a gap between receipt and consumption of coal at the level of DCB plants of around 130,000 tonnes per day. This gap is partly made up with import of coal, it added.

Fresh advisory

“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 (FY25),” the Ministry 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 DCB plants needs to be maintained by all the Central or State GENCOs and IPPs.

“The Ministry of Power has therefore decided to extend the advisory dated March 4, 2024 by modifying the blending requirement to 4 per cent (by weight) till October 15, 2024. The said advisory will not be applicable to DCB plants located within a radius of 200 kms from the linked mine/coal source,” it added.

Accordingly, all Gencos are to firm up their imported coal contracts for ensuring supplies till October 15. Further, Gencos must also continuously review stock positions of their DCB plants and opt for blending as per the requirements so that adequate coal stocks are maintained at thermal power plants (TPPs).

Coal demand

Earlier this month, Coal Ministry said that demand for the critical commodity rose by 7.30 per cent on an annual basis so far in Q1 FY25, which is an all time high record, as India faces its longest spell of heat wave in history driving up demand for electricity.

The consumption by domestic coal based power plants stood at 183.61 million tonnes (MT) during April-June 15, 2024 from 171.15 MT a year-ago, while daily consumption rose to 2.42 MT from 2.25 MT.

The April-June 2024 period has been marked by sweltering temperatures coupled with intense heat waves across north India leading to a higher requirement for cooling, which is pushing up the demand for electricity.

The higher requirement for electricity can be gauged from the fact that India’s power consumption has been growing at over 10 per cent. During April 2024, it rose by 11 per cent y-o-y, while the growth in May was steeper at 15 per cent y-o-y.

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