Prices of power in the spot market rose to a nine-year high in September on account of soaring electricity demand in many states due to the festive season and shortage of coal in thermal plants.
Even as coal has been banned as an approved fuel for usage in Delhi industries, tonnes of it is still making its way into the national capital from as far off as the Unites States and Indonesia.
Pointing to coal shortage for thermal power generation, Tamil Nadu Chief Minister K. Palaniswami on Friday urged the central government to supply 72,000 tonnes of coal daily to help the state thermal plants towards optimal electricity generation.
The government plans to auction power supply contracts with attached coal supplies, ease norms to allow coal usage for short-term power contracts and put in place a payment mechanism to help power projects recover dues in time from state electricity distribution companies to alleviate the sectoral stress to a large extent.
Coal is the main source of energy in India as it fulfils almost 67 per cent of the total commercial energy consumed in the country. This fossil fuel is found in the form of sedimentary rocks and is often known as ‘Black Gold’.
India’s steel minister said on Thursday he wanted the finance ministry to scrap the 2.5 percent duty on imports of coking coal, a key steelmaking raw material, to limit input costs.
The high court has asked Mahagenco to reply on what rate it had supplied coal to private power plants before September 19.
One of the standout commodity performers this year has been thermal coal, but not all coal is created equal and disparities in pricing may help explain why India’s imports have stayed strong despite the higher costs.
India requires stringent steps to ensure maximising the efficiency of its existing coal-fired power plants to achieve nationally determined contributions under the landmark 2015 Paris Climate Change Agreement, a report said on Thursday.
Making the transition to a low-carbon economy has the potential to unlock $US26 trillion ($36 trillion) in benefits by 2030, while failure to act on climate change will trigger huge costs including a surge in refugees, a report co-authored by Britain’s Lord Nicholas Stern has found.