Continue blending of 4% imported coal till October 15, government tells power plants

The government has asked domestic coal-based thermal power producers to continue blending imported fuel until October 15, and reduced proportion of blending to 4 per cent from six per cent to ensure uninterrupted electricity supply during summer

The move will ensure adequate supply of dry fuel at power plants to meet electricity demand while reducing the use of imported coal, according to the power ministry.

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 (power generation companies) and IPPs (independent power producers), the Union power ministry said in its latest advisory.

In an earlier direction issued in March 2024, the power ministry had allowed all thermal power plants to blend up to six per cent of imported coal with domestic fuel till June this year.

The ministry has "decided to extend the advisory dated 04.03.2024 by modifying the blending requirerment to 4 per cent (by weight) till 15.10.2024", said the fresh advisory dated June 27.

However, the said advisory will not be applicable to domestic coal based (DCB) plants located within a radius of 200 kms from the linked mine/coal source.

The power minister on June 13 reviewed the position of coal stocks at DCB plants.

The peak power demand has already touched the highest-ever level of of 250 GW in May 2024.

Although there is a significant improvement in rake loading as well as receipt of domestic coal in the first quarter of FY25 compared to Q1 of FY24, there is still a gap between receipt and consumption of coal at the level of DCB plants of around 1,30,000 tonnes per day. This gap is partly made up with import of coal.

"...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," the ministry said.