From The Economic Times · Reuters · · 1m 30s
India Considers Coal Blending Mandate
India may require power plants to blend imported coal with domestic supplies to address supply shortages.
In brief
India may require power plants to blend imported coal with domestic supplies to address supply shortages. India plans to mandate power plants blending up to 5% imported coal to ease supply crunch and rising power prices. Originally reported by The Economic Times.
India Weighs Coal Blending
India is considering telling power plants to blend imported coal with domestic supplies for the first time since 2024 to ease a supply crunch that has pushed monthly spot power prices to their highest since 2022.
Global Coal Demand Rises
Higher global coal demand and rising freight costs are set to make imports costlier as Indonesian prices are up about a fifth since May while Russian prices are 14% higher and South African rates are up 19%.
Blending Plan Details
Under the plan being discussed by officials of the power ministry, thermal power plants would have to blend up to 5% imported coal with domestic coal.
Reversal in Policy
The plan represents a sharp reversal in New Delhi's drive to boost domestic coal production and curb imports, which helped prune overseas supplies over the past two years.
Coal Stocks Decline
Coal inventories at power plants have fallen nearly twice as fast as a year before as September electricity demand held at levels seen during India's broiling summer.
Power Sector Challenges
Nearly 40% of India's coal-fired power plants now hold less than three days of coal stocks, leaving utilities with little cushion as consumption outpaces fresh supplies.
At a glance
India plans to mandate power plants blending up to 5% imported coal to ease supply crunch and rising power prices.
