The Ministry of Power Power asked the Centre Electricity Authority (CEA) to determine how much domestic coal has been consumed by power plants using the Skati B policy. The ministry asked the CEA to also take into account 10% blending of imported coal, which is equal to 15% domestic coal in energy terms.

“Power Ministry has directed CEA to determine the eligible quantity of domestic coal for the power plants using coal under Shakti B(viii) (a) taking into account 10% imported coal for blending which is equivalent to about 15% of domestic coal in energy terms,” said a ministry statement.

Shakti B (viii) (a) is the window for power plants having untied capacity to bid for coal, to generate power using this coal and sell it in the exchange under Day Ahead Market (DAM) or the DEEP portal for short term PPA, it added.

For such plants, the ministry directed the CEA to compute the quantity of coal consumed (procured under SHAKTI B (viii) (a) window) on the basis of mandatory blending of 10% by weight for generation during the period starting from June 12 to March 31, 2023.

This will give a window of about 3 weeks for these plants to procure imported coal. Considering the increased demand of electricity, and coal supplies from domestic coal companies not matching with the consumption of coal, Power Ministry advised all Gencos including IPPs on 28.04.2022 to blend 10% of imported coal for power generation. This was done to supplement the domestic coal supply.

The power ministry has taken a number of steps in the backdrop of coal shortages at thermal power plants. Experts warn India stares at another power crisis in the months ahead owing to low coal reserves at TPPs and monsoons impacting mining and transportation operations.