Centre to review imported coal blending norms next month

livemint.com:

New Delhi: Amid a consistent rise in power demand and inadequate domestic coal supplies, the Union power ministry is set to review its current policy of mandating power generation companies to blend 6% imported coal. The review, likely in January, will determine whether to continue the blending requirement beyond March and consider increasing the blending percentage in response to growing demand and fluctuating coal stocks, said two people in the know of the development. "The coal stock position and demand situation would be looked into and if the demand seems to be rising, the blending quantum may even be increased," said one of the persons on condition of anonymity.

The review will take into account the expected rise in demand as temperatures increase following the end of winter, the person added. Queries sent to the ministry remained unanswered till press time. Following a demand surge and a resultant crisis in September-October 2022, the government had directed all power generation companies (gencos) to blend 6% imported coal, a temporary measure extended till March due to low domestic supplies.

However, the current coal stock situation appears comfortable, with data from the Central Electricity Authority indicating sufficient fuel availability as of 7 December. As per official data, consumption at domestic coal-based power plants stood at 2.02 million tonne as on 7 December, with supplies at 2.4 million tonne. This decision to reassess blending norms is influenced by record-breaking power demand in recent years.