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CIL Aiming to Curb Thermal Coal Imports

Coal News - Published on Thu, 28 May 2020

Image Source: Thermal Coal Import
Indian government has decided to bring to zero import of coal for blending purpose by domestic coal-based power plants in the current fiscal, and has asked state owned Coal India Limited to enter into a pact with power generation companies for domestic supply of coal. Coal India Ltd informed its subsidiaries “Several initiatives are being taken for supply of domestic coal as import substitution and the same has been deliberated in the meetings held on April 4 in Ministry of Coal and in the Ministry of Power chaired by Additional Secretary Power. It has been decided to bring the level of import of coal for the purpose of blending by the domestic coal-based power plants to zero level in this fiscal. It was also decided in the said meeting to tie up the long-term requirement of import substitution through MoU. Accordingly, the supply of coal through import substitution, a model MoU has been prepared, which has been legally vetted. The MoU will be an integral part of the fuel supply agreement. Performance incentive as well as other provisions including compensation for short supply/lifting shall be dealt as per FSA provisions."

Further, the Central Electricity Authority will issue directions to all such power plants/power generation companies to sign memorandum of understanding with coal companies and ensure dry fuel is supplied to such power sector units over and above their fuel supply agreement entitlements. Under FSA, fuel supplies are governed by legally enforceable agreements between the seller and the consumer under specific terms and conditions.

The country imported 247.1 million tonnes of coal in 2019-20, about 5 per cent higher than 235.35 million tonnes imported during 2018-19.

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Posted By : Yogender Pancholi on Thu, 28 May 2020
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