+
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
Real Estate

No glass boxes!

India is moving away from the ‘glass box’ syndrome, all-glass façades that were widely used in commercial buildings in the last two decades but came at a significant environmental cost given the country’s predominantly hot and humid climate. Poor thermal performance, excessive heat gain and dependency on mechanical cooling systems made buildings with glass façades energy guzzlers and significantly increased their carbon footprint.That said, it’s important to be aware that “glass is not the enemy,” points out Heena Bhargava, Architect, Architecture Discipline. “How it ..

Next Story
Infrastructure Transport

Why do pavements fail?

India’s highways continue to expand at a healthy pace. But conversations on the surface quality of highways are growing louder because major deficiencies and black spots continue to be identified, and they are cause for concern.“Road surface roughness causes vehicle vibrations that, in turn, can affect the performance of drivers,” explains Dr V K Gahlot, Road Safety Auditor, Centre for Research and Sustainable Development (CfRSD). “Continuous exposure may induce fatigue, a contributory factor to road accidents. Road surface roughness also affects the vehicle operating cost...

Next Story
Infrastructure Urban

APAC Logistics Rents Fall for First Time Since 2020

Logistics rents across the Asia-Pacific region declined 0.4% year-on-year in H1 2025, marking the first annual drop since 2020, according to Knight Frank’s Logistics Highlights H1 2025 report. Despite global trade tensions and cautious occupier sentiment, India emerged as a standout performer, driven by robust manufacturing momentum and supply chain recalibration.Regional Trends and DivergenceWhile rents largely remained stable across most markets, regional differences became more pronounced:Mainland China continued to see rental declines, though the pace of decline moderated to 12.8% YoY, s..

Advertisement

Subscribe to Our Newsletter

Get daily newsletters around different themes from Construction world.

STAY CONNECTED

Advertisement

Advertisement

Advertisement

Talk to us?