Union minister for power and new & renewable energy R.K. Singh, in a statement to the Lok Sabha, said that the average power purchase cost in India saw a marginal increase of 71 Paisa between the financial years 2022 and 2023. This increase, he stated, was primarily due to escalating transmission and distribution costs.
In his written reply, the minister elaborated on India’s coal import strategy, crucial for meeting the burgeoning demands of thermal power plants. Since 2009, power plants have been importing coal both for blending purposes and for use in plants solely dependent on imported coal. The data presented highlighted a fluctuating trend in coal imports, with a high of 90.1 million tonnes in 2014-15 and a subsequent drop to 27.0 million tonne in 2021-22, followed by a recovery to 55.6 million tonne in 2022-23.
The minister’s response also underscored a critical phase starting from July 2021, when an increase in electricity demand led to a significant depletion of coal stocks at power plants. This depletion, from 28.7 million tonne in June 2021 to about 8.1 million tonne by September 2021, necessitated a directive from the ministry of power for state GENCOs and IPPs to import coal to meet the deficit.
During the first two quarters of FY 2022-23, the disparity between the supply and consumption of domestic coal reached approximately 30 million tonne, equating to a daily shortfall of around 1.6 lakh tonne. To manage this challenge, the ministry advised GENCOs to decide on coal blending based on domestic supply and stock levels, ensuring continuous monitoring.
The minister further noted that had there been no imports for blending, coal stocks in thermal power plants could have depleted to zero by September 2022, potentially leading to widespread power cuts and blackouts. In response, the ministry issued advisories in January and September 2023 for enhanced coal imports through a transparent and competitive process.
