Power plants ignore call to stop coal imports as domestic supply growth still uncertain


Power plants ignore call to stop coal imports as domestic supply growth still uncertain

Coal India Ltd’s (CIL) effort to help power plants replace imported coal with domestic supplies hasn’t been quite a success as select power producers continue with their imports, which has worried the ministry.

“It is learnt that some of the power plants having fuel supply agreements with Coal India have not utilised this opportunity and are importing coal. Therefore, it is again requested that these power plants may apply to the marketing division of CIL for sourcing of domestic coal as substitute for import by road mode from sources where coal is available with CIL,” said a letter issued last week by the mining major’s marketing department.

The letter refers to a strategy decided after meeting with various power plants to encourage import substitution at the insistence of the coal ministry, which would help in saving precious foreign exchanges. Read More

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