India has allowed some state utilities to sell up to 25% of the coal allocated to them to other producers and urged states to import coal for blending with local grades to avert power cuts this year, a government statement said on Wednesday.
India is likely to face more power cuts this year as utilities’ coal inventories are at the lowest pre-summer levels in at least nine years and electricity demand is expected to rise at the fastest pace in at least 38 years, officials and analysts say.
“Tolling”, or selling up to 25% of state utilities’ allocated coal, would allow some power producers access to fuel from the coal mines, helping to boost power generation at a lower cost.
