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regular-article-logo Sunday, 05 May 2024

Ultimatum on coal to power plants

Failure to place order within stipulated time to result in allocation of only 70 per cent of their requirement

PTI New Delhi Published 03.06.22, 01:49 AM
On May 18, the ministry of power had warned that if orders for coal imports are not placed by May 31 and the imported fuel does not start arriving at power plants by June 15, the defaulter gencos will have to increase their imports to the extent of 15 per cent.

On May 18, the ministry of power had warned that if orders for coal imports are not placed by May 31 and the imported fuel does not start arriving at power plants by June 15, the defaulter gencos will have to increase their imports to the extent of 15 per cent. Representational picture

Domestic power producers have time till Friday to place orders for import of coal, failing which they will be allocated only 70 per cent of their requirement by the government, according to an official notification.

On May 18, the ministry of power had warned that if orders for coal imports are not placed by May 31 and the imported fuel does not start arriving at power plants by June 15, the defaulter gencos will have to increase their imports to the extent of 15 per cent.

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Further, if blending with domestic coal is not started by June 15, the domestic allocation of the concerned defaulter’s thermal power plants will be further reduced by 5 per cent, the ministry had said in a letter to state governments and power generation companies (gencos), including independent power producers

“Those GENCOS/IPPs who either do not place their indents with CIL by June 3 or have not initiated their tender processes for purchase of imported coal for blending purposes, they will be allocated only 70 per cent of the quantity of domestic coal... (which) will be cut to 60 per cent by June 15.”

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