Coal India Limited (CIL), the country’s leading coal producer, is taking strategic steps to ensure a steady supply of coal for the state’s Thermal Power Plants (TPPs). In a recent announcement, it was revealed that CIL has entered into an agreement with GHV-BDE-DIL JV, a vendor from Indonesia, to procure approximately 3.58 lakh tonnes of coal this year.
Increasing Demand for Electricity: The decision to import coal from Indonesia comes in response to the rising demand for electricity in the country. The Ministry of Power (MoP) has emphasized the need to build coal stocks at power plants before the monsoon, to ensure uninterrupted power supply. In line with this, the MoP advised power plants to import coal for blending purposes, which should constitute around 10% of their coal demand.
Improving Coal Stock Situation: The MoP has reviewed the coal stock situation and recognized the importance of balancing domestic coal supplies with imported coal. On August 1, 2022, the MoP, along with the states, Independent Power Plants (IPPs), and the Ministry of Coal, decided to estimate the optimum percentage of coal mix based on the availability of domestic supplies.
Focusing on Reliable Suppliers: CIL has been actively seeking reliable suppliers to meet the ever-increasing coal demand in the country. By partnering with GHV-BDE-DIL JV, the company ensures a consistent supply of quality coal imported from Indonesia. This move reflects not only the commitment of CIL to meet energy requirements but also highlights the importance of trustworthy partnerships in the coal industry.
Boosting Power Generation: The availability of sufficient and reliable coal supply is crucial for power plants, especially considering India’s growing energy needs. With 86% of the imported coal, since the initial ‘Firm Orders’ by various Power Generating Companies and prior payment, utilized in recent times, the forthcoming import of 3.58 lakh tonnes of Indonesian coal will further boost power generation.
Efforts to Ensure Uninterrupted Power Supply: The Ministry of Coal, Mines, and Parliamentary Affairs, under the leadership of Shri Pralhad Joshi, has been proactive in facilitating the coal procurement process. The placement of firm orders and necessary payments made by Power Generating Companies has ensured uninterrupted power supply and played a vital role in meeting electricity demand. In conclusion, the procurement of 3.58 lakh tonnes of coal by CIL from Indonesia is a significant step in meeting the growing coal demands of Thermal Power Plants. It not only emphasizes the commitment of CIL and the Ministry of Power to ensure uninterrupted power supply but also highlights the importance of efficient coal blending and strategic imports to maintain a healthy coal stock ahead of the monsoon. Cooperation between different stakeholders is crucial for a sustainable and reliable energy sector in India.
