Power Min asks imported coal-based plants to operate at full capacity till Dec 31

The power ministry has asked all thermal plants using imported coal to operate at full capacity for another two and a half months till December 31 to avoid electricity shortage amid rising demand in the country.

Earlier this year, the ministry invoked Section 11 of the Electricity Act to mandate imported coal-based plants to run at full capacity.

"In view of the power demand scenario in the country, it has been decided to extend the time period for the Section 11 directive to generating companies having Imported Coal Based (ICB) plants till 31.12.2024," the Ministry of Coal said in a letter to 15 firms running imported coal-based plants.

The ministry earlier this year had projected a peak power demand of 260 GW for the summer season (April to June) in view of longer heat wave duration. Peak power demand had touched an all-time high of about 250 GW in May 2024.

The India Meteorological Department (IMD) had predicted above-normal maximum temperatures in most parts of the country in summer this year.

A power ministry notice to 15 imported coal-based thermal power projects on April 12 said, "It has now been decided to extend the time period for Section 11 directive to generating companies having imported coal-based plants, up to October 15, 2024".

In October 2023, the ministry extended the deadline for these imported coal-based plants to operate at full capacity from November 1, 2023, to June 30, 2024.

In February 2023, the ministry invoked Section 11 of the Electricity Act 2003 to avoid any outage due to a sudden rise in power demand.

The direction was for three months -- from March 16 to June 15, 2023, which was extended till September 30, 2023, and later till October 31, 2023.

In October 2023, the duration for running these imported coal-based power plants at full capacity was further extended till June 30, 2024.

The peak power demand was estimated to touch a record high of 229 GW during the summer of 2023.

However, unseasonal rains affected demand as people used fewer cooling appliances like air conditioners, which guzzle electricity.

The 15 imported coal-based (ICB) power plants that have been directed to run their plants at full capacity include Tata Power and Adani Power's plants at Mundra in Gujarat ; Essar power plant in Salaya; JSW Ratnagiri; Tata Trombay; Udupi Power; Meenakshi Energy; and JSW Torangallu.

The ministry has been saying that in the likely scenario of a gap in demand and supply of domestic coal and the essential requirement of maintaining coal stock at generating stations, the use of imported coal needs to be increased by way of blending with domestic fuel in domestic coal-based plants and also by ensuring optimum generation from ICB plants.

This will ease the pressure on domestic coal supply and also ensure that all plants are available during the peak demand period, it had noted.

The ministry has provided for pass-through of the higher cost of imported coal as well as the provision of sale of excess power in exchanges.