Coal import targets eased for power utilities

New Delhi, August 2

The government has eased coal import targets for utilities, according to a notice from the power ministry, setting aside a target for them to import 10% of their coal needs and marking yet another reversal in energy policy.

State government-run utilities and private power producers should instead decide by themselves how much coal they need to import, according to the notice, which was sent to government officials and private utilities yesterday.

“It has been decided that now onwards, states/independent power producers and Ministry of Coal may decide the blending percentage after assessing the availability of domestic coal supplies,” the power ministry said. — Reuters

Electricity demand highest in 38 years

• In May, the power ministry had said it would cut domestic fuel supplies to government utilities if they did not import 10% of their coal needs for blending with domestic coal
• India’s annual power demand is seen growing at its fastest rate in at least 38 years while global coal prices are trading at near-record levels