CIL to import fuel for utilities use as power shortages loom
COAL & MINING

CIL to import fuel for utilities use as power shortages loom

State-run Coal India Limited (CIL), the world's largest coal miner, will import the fuel for use by utilities as shortages raise concerns about renewed power outages.

It would be the first time since 2015 that Coal India has imported the fuel, emphasising efforts by state and federal officials to stock up to avoid a repetition of April, when India encountered its worst power cuts in more than six years.

CIL would import coal for blending on a government-to-government (G2G) basis and supply it to thermal power plants of state generators and independent power producers (IPPs), the Power Ministry said in the letter dated May 28.

The letter was sent to all utilities, and top Central and state energy officials, including the CIL's coal secretary and the chairman.

India is likely to face a wider coal shortage during the third quarter (Q3) of 2022 due to anticipations of higher electricity demand, stoking fears of widespread power outages.

The power ministry said in the letter the decision was taken after almost all states indicated that multiple coal import tenders by states would lead to a mess and sought centralised procurement through CIL.

India stepped up pressure on utilities to raise imports to blend with local coal in recent days, warning of cuts to the supply of domestically mined coal if power plants did not create coal inventories via imports.

But the power ministry on Saturday requested states to suspend tenders that are under process.

The ministry said that the tenders under process by state generators and IPPs for importing coal for blending may be kept in suspension to await the cost discovery by Coal India via the G2G route to procure coal at the least possible rates.

Coal inventories at power plants have dropped by nearly 13% since April to the lowest pre-summer levels in years.

Image Source

Also read: Coal production hikes to 34 mt till the first half of May

State-run Coal India Limited (CIL), the world's largest coal miner, will import the fuel for use by utilities as shortages raise concerns about renewed power outages. It would be the first time since 2015 that Coal India has imported the fuel, emphasising efforts by state and federal officials to stock up to avoid a repetition of April, when India encountered its worst power cuts in more than six years. CIL would import coal for blending on a government-to-government (G2G) basis and supply it to thermal power plants of state generators and independent power producers (IPPs), the Power Ministry said in the letter dated May 28. The letter was sent to all utilities, and top Central and state energy officials, including the CIL's coal secretary and the chairman. India is likely to face a wider coal shortage during the third quarter (Q3) of 2022 due to anticipations of higher electricity demand, stoking fears of widespread power outages. The power ministry said in the letter the decision was taken after almost all states indicated that multiple coal import tenders by states would lead to a mess and sought centralised procurement through CIL. India stepped up pressure on utilities to raise imports to blend with local coal in recent days, warning of cuts to the supply of domestically mined coal if power plants did not create coal inventories via imports. But the power ministry on Saturday requested states to suspend tenders that are under process. The ministry said that the tenders under process by state generators and IPPs for importing coal for blending may be kept in suspension to await the cost discovery by Coal India via the G2G route to procure coal at the least possible rates. Coal inventories at power plants have dropped by nearly 13% since April to the lowest pre-summer levels in years. Image Source Also read: Coal production hikes to 34 mt till the first half of May

Next Story
Infrastructure Urban

Coal Ministry Achieves Milestones under Special Campaign 5.0

The Ministry of Coal and its Public Sector Undertakings (PSUs) have achieved notable milestones under the Special Campaign 5.0, focusing on cleanliness, operational efficiency, and sustainability across the coal sector. During the implementation phase from 2–31 October 2025, over 1,205 sites were cleaned, covering 68,04,087 sq ft, nearing the target of 82,51,511 sq ft. Scrap disposal of 5,813 MT against a target of 8,678 MT generated Rs 228.7 million in revenue. In addition, 1,11,248 physical and 30,331 electronic files were reviewed, with 74,123 weeded out or closed. Key initiatives showc..

Next Story
Infrastructure Energy

Vesting Orders Issued for Three Coal Blocks under Commercial Auctions

The Ministry of Coal’s Nominated Authority has issued vesting orders for three coal blocks under commercial coal block auctions on 23 October 2025. The Coal Mine Development and Production Agreements (CMDPAs) for these mines were earlier signed on 21 August 2025. The three blocks include Rajgamar Dipside (Deavnara), Tangardihi North, and Mahuagarhi. Of these, two are partially explored while one is fully explored, with a combined peak rated capacity of around 1 MTPA and geological reserves of approximately 1,484.41 million tonnes. These mines are expected to generate annual revenue of abou..

Next Story
Infrastructure Urban

TEC, IIT-Hyderabad Partner to Boost 6G and Telecom Standards

The Telecommunication Engineering Centre (TEC), technical arm of the Department of Telecommunications (DoT), has signed a Memorandum of Understanding (MoU) with the Indian Institute of Technology Hyderabad (IIT Hyderabad) for joint research and technical collaboration in advanced telecom technologies and standardisation. The partnership focuses on developing India-specific standards and test frameworks for next-generation networks, including 6G, Artificial Intelligence (AI), and Non-Terrestrial Networks (NTNs). It also aims to enhance India’s participation in international standardisation f..

Advertisement

Subscribe to Our Newsletter

Get daily newsletters around different themes from Construction world.

STAY CONNECTED

Advertisement

Advertisement

Advertisement

Talk to us?