The withdrawal of the mandatory blending order indicates adequate stocks at power plants before the annual rise in coal demand post-monsoon when electricity demand picks up. Data showed 31 million tonnes of coal stock, including 2.5 million tonnes of imported coal, at power stations, among the highest in August any year.
The withdrawal of the mandatory blending order indicates adequate stocks at power plants before the annual rise in coal demand post-monsoon when electricity demand picks up. Data showed 31 million tonnes of coal stock, including 2.5 million tonnes of imported coal, at power stations, among the highest in August any year.
The coal blending order, issued on May 26 under Section 11 of the Electricity Act, mandated 10 per cent imported coal use and provided appropriate compensation to 32 GW domestic coal-based power projects till March next year.
“The coal stock position in power plants has been reviewed periodically with the stakeholders, including ministry of coal and ministry of railways. It has been decided to withdraw the aforesaid order dated 26th May 2022, with immediate effect,” the order issued on Thursday by theUnion power ministrysaid.
“Imported coal purchased under the aforesaid directions, till the date of issuance of this letter, shall be utilized in accordance with the methodology given the subject order dated 26th May 2022,” it added. The power plants have placed large orders for imported coal. NTPC and DVC have placed close to 23 million tonnes of contracts for the fiscal, majorly on Adani Enterprises. CIL places another 6MTs.
Section 11 of the Electricity Act provides that the government may, in extraordinary circumstances, ask a generating company to operate and maintain any station in accordance with its directions.
The coal ministry has also withdrawn another order on Thursday issued on July 13 that said coal supplies of generation companies that did not adhere to the 10 per cent blending order would be reduced, sources told ET.
