Importers asked to supply more coal to tackle heat wave

NEW DELHI: India’s power ministry called on coal importers to ensure supplies as the country increasingly relies on the fuel to stem power blackouts, according to people familiar with the matter.

The ministry would help with obstacles such as late payments from provincial power plants, ministry officials said in a meeting with suppliers, according to the people mentioned above, who asked not to be identified as they are not authorized to speak to the press.

The ministry has asked generators to import a total of about 19 million tonnes during the three months to June so that they have enough reserves before the rainy season slows supplies.

India has seen an unprecedented demand for coal this summer, as soaring temperatures and industrial activity spurred electricity demand. That has pressured domestic coal supply infrastructure, forcing the country to turn to imports of the fuel and ditch previous efforts to slow overseas purchases.

The power ministry also plans to meet port and rail officials to ensure the imported coal reaches the plants smoothly, instead of being held up at transport terminals for weeks.

The ministry’s press office didn’t immediately respond to an email seeking comment.

Despite repeated calls from the central government, generation plants, mainly owned by state governments, have been slow to place orders.

The biggest impediment is prices shooting up after the start of Russia-Ukraine war. Asian benchmark Newcastle coal futures have advanced more than 150% this year.

The sliding rupee is not helping imports either. It tumbled to a record low on Thursday, making imports more expensive.

Time is short too. From publishing tenders to having the coal delivered at the plant gate can take several weeks.