Govt extends mandate for power producers to import 6% of coal needs

The Indian government has extended the mandate for the country’s power producers to import 6 per cent of their coal requirements until June, despite adequate domestic availability, amid transport constraints and higher electricity demand, a power ministry note said on Tuesday.

India last year had asked utilities to import 6 per cent of their coal requirements until March due to an unprecedented surge in power and coal demand.

Despite record production by state-run Coal India, which accounts for about 80 per cent of India’s domestic production of the fuel, constraints with the country’s railway network necessitated imports, the note said.