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Govt urges states to import coal for up to 10% blending for uninterrupted power supply

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Govt urges states to import coal for up to 10% blending for uninterrupted power supply

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Minister of Power RK Singh reviewed the operations of imported coal based (ICB) plants and directed all the procurer states to ensure that all plants are operational at fair and reasonable tariffs.

Minister of Power RK Singh has urged states to import coal for up to 10 percent blending to ensure adequate stocks for uninterrupted power supply, a statement released by the ministry said on Wednesday.

The ministry said that tolling will be allowed for state power generating companies (gencos) to optimally utilise linkage coal. "In order to avoid long distance coal transport in respect of certain State Gencos, tolling facility would be allowed up to 25 percent of linkage coal," it said.
"This would enable States to optimally utilise their linkage coal in the plants nearer to the mines as it would be easier to transmit electricity instead of coal transport to far off States," added the statement.
Singh reviewed the operations of imported coal based (ICB) plants and directed all the procurer states to ensure that all plants are operational at fair and reasonable tariffs, according to the release.
"It was decided to resolve all the operational issues in ICB plants and make them fully functional," it said.
The development comes amid reports of coal shortage which is likely to lead to more power cuts this year in the country.
Coal inventories are at the lowest pre-summer levels in at least nine years and electricity demand is likely to increase at the fastest pace in at least 38 years, reported Reuters, citing officials and analysts.
Power plants' inventories had an average stock of only nine days at the beginning of financial year 2023, the lowest since at least 2014, said the report. Federal guidelines require power plants to have on an average at least 24 days of stock.
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