Coal news and updates

Most states fall in line with MoP diktat; agree to import coal

Falling in line with the Centre’s diktat to start the process of importing coal or face a cut of 30% in domestic coal supply from June 7 onwards, most state-run utilities and independent power producers (IPPs) have agreed to import coal, either on their own or through Coal India (CIL), to meet the shortfall in domestic coal supply.

As on Saturday evening, CIL had received indents for importing 2.4 million tonnes (MT) of coal from West Bengal, Punjab, Rajasthan, Madhya Pradesh, Andhra Pradesh, Gujarat and Maharashtra, while states such as Tamil Nadu, Karnataka and Haryana have started the process of importing coal on their own.

However, the notable exception are thermal power generators from Uttar Pradesh, where the state government has refused to give the state gencos as well as the private generators its approval for importing the fuel on the grounds that the imported fuel is going to be four-to five times costlier that the domestic coal.