Government rolls back mandatory coal import order for power plants

The central government has rolled back an emergency order that mandated power plants to import 10 per cent of their coal requirement and blend it with domestic supply.

The withdrawal of the mandatory blending order indicates adequate stocks at power plants before the annual rise in coal demand post-monsoon when electricity demand picks up. The coal blending order, issued on May 26, 2022, mandated 10 per cent imported coal use and provided appropriate compensation to 32 GW domestic coal-based power projects till March 2023. The coal ministry has also withdrawn an order issued on July 13, 2022 that said coal supplies of generation companies that did not adhere to the 10 per cent blending order would be reduced.