India shelves coal import plan as high global prices, weak rupee raise costs
India has decided not to mandate coal imports for power plants due to high international prices and a weaker rupee. Coal stockpiles have reached critically low levels at many power stations, prompting concerns about electricity shortages in the country. Policymakers are focusing on boosting domestic coal production and improving transportation to mitigate the situation.
India has halted plans to allow power plants to import coal to address fuel shortages, as soaring global prices and a weaker rupee have made overseas shipments more expensive, according to a Bloomberg report. The government had previously considered a proposal to mix imported coal with domestic supplies, but the high costs of imports have put the plan on hold.
Instead, policymakers have directed Coal India Ltd to boost production and the railways to ensure timely coal delivery to power stations. The decision follows a sharp decline in coal inventories at power plants, which fell to their lowest level in nearly five years, exacerbated by high electricity demand and reduced hydropower generation.
Nearly half of India's power plants had critically low coal reserves as of October 17, with stocks below a quarter of the required levels. The situation has been worsened by a poor monsoon, which has kept temperatures high and increased electricity consumption for cooling and irrigation, while also reducing hydropower output. However, the pace of coal depletion has slowed in October, with average daily inventory declines of around 48,000 tonnes, compared to a fifth of the rate seen in September.
Policymakers expect electricity consumption to ease as temperatures drop, and coal inventories recover.
Written by urgent.news from Times of India's reporting — not their text. Machine-written — may contain errors; check the original before relying on it.
