New Delhi — The Indian government has asked power companies to import steam coal, sourcessaid Friday, due to the ongoing coal shortage in the country and rising demandfor coal-fired electricity. Receive daily email alerts, subscriber notes & personalize your experience. Coal stocks at India's power plants are down sharply year on year, with over40 thermal power plants having less than five days of coal stocks as ofWednesday, according to the Central Electricity Authority's latest report. Ayear ago only 21 power stations had less than five days of coal stocks. Low hydro power generation and rising temperatures have pushed up demand forcoal, but state-run Coal India Limited is unable to meet it, a governmentsource said. There are also logistical and transportation issues due to an inadequate railnetwork, which is hampering coal deliveries to power stations, the sourcesaid. Market sources said coal imports will rise during the 2018-19 fiscal year assupplies from domestic sources dwindle and a ban on petroleum coke usage inthe country looms. According to the current import policy, coal is kept under open generallicense and consumers are free to import coal from the source of their choiceas per their contractual prices on payment of the applicable duty. Power utilities imported 56.41 million mt steam coal in fiscal 2017-18, down13% year on year. --Sapna Dogra, newsdesk@spglobal.com --Edited by Jonathan Fox, jonathan.fox@spglobal.com
The Indian government has asked power providers to import steam coal amid a national shortage that coincides with the summer surge in electricity demand and a drop in hydropower generation. More than 40 thermal power plants have less than five days of coal stocks, the Central Electricity Authority has said. Furthermore, India's poor rail network is hindering coal deliveries to power stations and power utilities have decreased coal imports 13% YoY. Coal imports are to rise in the 2018-2019 fiscal year amid a drop in domestic production and an incoming ban on petroleum coke, according to market sources.