Govt sets end-June coal import targets

The Union government has asked state and private sector utilities to ensure delivery of 19 million tonnes (MT) of coal from overseas by end-June, as per a power ministry letter, reflecting an urgency to secure supplies in a pricey market amid increasing blackouts.

The move, which marks the first time the world’s second largest coal importer is issuing timelines for imports, can put pressure on the global prices of coal as the utilities rush to avoid a repeat of the electricity crisis in April. If the timelines are adhered to, the imports by the states and private utilities over the next five months for blending with domestic coal will surpass annual imports by the entities in at least six years.

An unrelenting heatwave pushed electricity demand to a record high in April, leading to the worst power crisis in over six years and forcing India to go back on a policy to cut down coal imports.

The Union government has asked state government-owned utilities to import more thsan 22 MT of coal and private power plants to import 15.94 MT.

The Union power ministry asked all utilities to ensure delivery of 50% of the allocated quantity by June 30, another 40% by end-August and the remaining 10% by the end of October, according to the letter to top officials at state energy departments and heads of private power plants.

State government-run utilities have not imported for blending over 7.1MT and private companies not more than 13.1MT since at least the year ending March 2017.

Data predating the year ended March 2017 is not available.