UP agrees to import coal; state govt to bear cost of Rs 895 crore
In a climb-down from its earlier stance, the Uttar Pradesh government on Tuesday decided to allow coal imports for blending with domestic coal for power plants in the state. The state cabinet approved the coal imports through by circulation, though it has tweaked the Centre’s directive of 10% blending for the entire year and instead allowed 4% blending for just two months – August and September 2022.
The UP government has been resisting the Centre’s directive to import coal, citing high costs.
Talking to FE, additional chief secretary, power, Awanish Kumar Awasthi said that the cabinet has approved import of a total of 5.46 lakh metric tonne of coal for the months of August and September through Coal India for both state generators as well as for IPPs. It has also decided that the additional cost of Rs 895 crore involved in the import would be borne by the state government. The state cabinet approved the proposal which was earlier cleared by the energy task force (ETF), headed by the chief secretary.
