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Coal India to import fuel for first time in years amid fear of more power outage: Report
Coal shortage
Representative image by Nikolay Kovalenko | Colin Viessmann on Unsplash

Coal India to import fuel for first time in years amid fear of more power outage: Report

| @indiablooms | 29 May 2022, 10:51 am

New Delhi/IBNS: The government-owned Coal India will import fuel for use by utilities amid fears of more power outages due to a shortage of the same, Reuters reported citing a letter by the Power Ministry.

It would be the first time since 2015 that Coal India, the world's largest coal miner, will import fuel as India faced its worst power cuts in more than six years.

"Coal India would import coal for blending on government-to-government (G2G) basis and supply ... to thermal power plants of state generators and independent power producers (IPPs)," the Power Ministry letter dated May 28, accessed by Reuters, read.

The letter was sent to all utilities, top central and state energy officials including the Coal Secretary and the Chairman of Coal India, said reports.

India is expected to face a wider coal shortage during the third quarter of 2022 due to expectations of higher electricity demand.

The Power Ministry said in the letter the decision was taken after nearly all states suggested a centralised procurement through Coal India.

 

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