Coal import mandate extended until June in India

11 Mar 2024 CW Team

India has prolonged the directive requiring its power producers to import 6% of their coal necessities until June 2024, despite having sufficient domestic availability, citing transportation limitations and heightened electricity demands, according to a statement from the power ministry released on 5th March.

In 2023, India instructed utilities to import 6% of their coal needs until March 2024 due to an unprecedented surge in power and coal demand. Despite considerable output by state-run Coal India, which contributes roughly 80% of India's domestic coal production, transportation constraints within the country's railway network necessitated imports, the statement noted. The ministry projected peak power demand to potentially reach 250 GW during the summer months (April-June 2024), marking a 3% increase compared to the record of 243 GW set in September 2023. Coal remains the cornerstone of India's power generation, constituting about 75% of the total, with coal-fired plants responsible for more than three-quarters of the nation's utilisation of this pollutant energy source.

Coal; Import; India; Rising costs; Electricity; Demand

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