Tatsat Chronicle Magazine

Amid Looming Energy Crisis, Power Ministry Amends Method For Use of Coal

April 23, 2022
Energy Crisis

Amid fears of another energy crisis hitting Asia’s third-largest economy, the Department of Energy on Friday reviewed the system of coal use (allocation to the state) by private power plants (IPPs).

Increasing the coal supply period from 1 year to 3 years has given power plants more visibility, the Ministry of Energy said in an official statement.

The energy ministry further modified the term of the bidding process from 67 days to 37 days. The ministry said measures have been taken to ensure more efficient use of domestic coal.

“The government has taken steps to make better use of rail infrastructure for maximum transportation of coal to power plants,” he added.

The ministry said it would help states use their bonds on power plants near coal mines, as it would be easier to supply remote states with electricity rather than transporting coal.

Power outages are already occurring in parts of India due to scorching heat and severe coal shortages.

Rising demand for electricity has prompted states such as Punjab in the north and Uttar Pradesh and Andhra Pradesh in the south to cut off supply.

In some places, this outage of up to eight hours forces customers to endure the heat or seek out expensive backup options.