India May Require Power Plants to Blend Imported Coal Amid Supply Crunch
What Happened
India is considering making it mandatory for thermal power plants to blend up to 5% imported coal with domestic coal to tackle a supply crunch and rising electricity demand. The proposal, still under discussion, would mark a reversal of the government's recent push to reduce coal imports. Coal imports have already reached a 15-month high as inventories at power plants decline rapidly.
Key Takeaways
The move aims to prevent power shortages and conserve domestic coal stocks ahead of next summer. However, it could increase power generation costs, as global coal prices and freight rates have risen sharply. Nearly 40% of India's coal-fired power plants reportedly have less than three days of coal stock remaining, highlighting the urgency of the situation.