New Delhi, The Union Minister for Power, R.K. Singh, reported a notable increase of 71 paise in the average power purchase cost from FY22 to FY23. This surge is attributed to elevated early-stage expenditures, including heightened transmission and distribution costs. The minister clarified that the rise is unrelated to the blending of imported coal and highlighted the ongoing practice of procuring coal by thermal power plants, whether domestic or imported.
The Ministry’s statement detailed the circumstances leading to the coal import recommendation, emphasizing a surge in electricity demand since July 2021. Due to increased consumption and low supplies, coal stocks depleted significantly. Consequently, the ministry advised state gencos, independent power producers (IPPs), and central gencos to import coal at varying percentages to meet demand. This mandate, initially set for 2022-23, has been extended until March 2024.
Recent reports suggest a potential review of the policy mandating power generation companies to blend 6% imported coal, indicating the dynamic nature of the energy landscape.
