MOP ISSUES DIRECTIONS TO DOMESTIC COAL-BASED PLANTS WITH PPA THROUGH TARIFF-BASED BIDS

MoP is trying to ease coal supply to power plants…

Power Ministry (MoP) has issued directions to Gencos in the light of current circumstances due to sharp increase in electricity demand. Ministry has stated that with soaring power demand and power shortage in some areas, the generation needs to be maximised. The ministry has added that despite efforts to increase the supply of domestic coal, there is still a gap between the requirement of coal and the supply of coal, because of which the coal stocks at the generating stations are depleting at a worrisome rate.

Taking note of the fact that the blending of imported coal to the extent of 10% is not happening as stipulated, and the reserve stocks of coal are continuing to dip, Power Ministry issued directions to all Gencos on 18.5.22 that if the orders for import of coal for blending are not placed by Gencos by 31.05.2022 and if the imported coal for blending purpose does not start arriving at the power plants by 15.06.2022, the defaulter Gencos would have to import coal for blending purpose to the extent of 15%  in the remaining period up to 31.10.2022.

According to MoP, domestic coal-based power plants, whose tariff had been determined under Section 63 of the Act, had raised concerns about the pass through of the increased cost in tariff if imported coal was used and had requested for a suitable methodology to determine the impact on tariff of mandatory blending of imported coal.

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