Daily Management Review

India intends to receive imported coal at a preferential rate


Mint reported, citing government officials, that India may soon initiate discussions with Russia, Australia, Indonesia, and South Africa to import coal at a subsidized rate as an emergency measure to avert fuel shortages at the country's power plants and develop reserves.

"The government is concerned that diminishing reserves could result in a worsening energy crisis in September and October if state electricity distribution corporations are unable to stockpile enough coal in time for the monsoon."

The Ministry of Foreign Affairs will lead the talks, which will also include the ministries of finance, coal, and energy, as well as state-owned Coal India, according to the newspaper.

The spike in electricity demand in India has exhausted power plant fuel stocks. The country's Central Electricity Authority reports that coal reserves at the 173 power plants it oversees number 23.32 million tons, which is just around 35% of the required supply.

Nine imported coal-fired power stations had critical coal supplies, while 84 Indian coal-fired power plants had less than a fifth of their required fuel reserves.

source: livemint.com