Power Crisis in India: The power crisis in the country has been deepening for some time now. Meanwhile, after seven years, state-owned Coal India has decided to import coal.
Earlier in the year 2015, Coal India had imported coal, at that time also the country was facing a power crisis. At present, the country is facing the worst power crisis of the last 6 years.
The power ministry, in a letter dated May 28, said that Coal India would import coal on a government-to-government basis and supply it to state generators and thermal power plants of independent power producers.
The letter has been sent to all utilities, top central and state energy officials, including the coal secretary and the chairman of Coal India.
The country is expected to face coal shortage during the third quarter of 2022. In addition, the electricity demand will also increase during this period.
The power ministry in the letter said that almost all the states had suggested that multiple coal import tenders by the states would lead to confusion and the decision was taken after seeking centralized procurement through Coal India.
India has in recent days increased pressure on utilities to increase imports to mix with local coal. It also said that the supply of domestic mined coal would be cut if power plants did not manufacture coal inventories through imports.
The power ministry on Saturday asked states to suspend tenders as part of the process.