The ministry will reduce domestic coal by 5% for defaulting jenkos

On Wednesday, the Ministry of Power told Gencos that if they did not start mixing imported coal with domestic energy by June 15, 2022, their domestic coal allocation would be reduced by 5%. All Genco have been advised to ensure adequate stock in their power plants for smooth operation by October 2022.

In a directive issued on Wednesday, the ministry extended the deadline for 10% imported coal mix from October 31, 2022 to March 2023.

The ministry said that if Gencos do not order coal mixes for the April-June period between May 31, 2022, and if imported coal does not start arriving at power plants by June 15, all defaulting Gencos will remain. To import 15% of the required amount of coal in the remaining period till 31st October.

The ministry noted that in April and May 2022, there was not much mixing, and power plants (which have not yet started importing imported coal) had to ensure that they would mix coal at 15% by October. 2022, and then from November 2022 to March 2023 at a rate of 10%.

In a letter to the Secretary of State / Chief Secretary and all Genco, the Ministry said that all Genco-based domestic coal would be allocated proportionately, given the less objective nature of the supply of coal from domestic sources than was required to meet the demand for electricity. On potential availability from June 1, 2022. Balance needs to be met from imported coal for blending purposes and production targets will be set in captive coal mines.

The ministry has directed that imported coal-based plants should be run and coal should be imported to blend the states, as in the previous year.

On May 5, the Ministry of Power issued an instruction under Section 11 of the Power Act 2003 that all imported coal-based plants must be operated at full capacity.

However, imports by the coal states for the mixture are not satisfactory.