State-owned CIL will continue with the supply of coal to the power plants under import substitution in the continued fiscal. The growth assumes significance in the wake of the PSU earlier stating its drive for coal import substitution has gained tempo with customers choosing about 90 million tonnes (MT) of indigenous coal in FY’21.
“The issue of supply coal in the FY 2021-22 was deliberated during the sub-group meeting…chaired by Joint Secretary, Ministry of Coal, wherein it has been decided to continue the supply of coal to the power plants under import substitution mechanism for FY 2021-22,” Coal India Ltd (CIL) stated in a discover.
CIL additional stated that the PSU and the Central Electricity Authority (CEA) have been directed to put discover asking to submit the requirement for 2021-22.
“Power utilities desirous of procuring domestic coal in lieu of imported coal are hereby requested to submit their…requirements of coal for FY 2021-22,” the discover stated.
It additional stated that the supply of coal to power plants can be made strictly as per availability and they’re going to have to honour their fuel supply settlement (FSA) dedication earlier than lifting coal under import substitution.
“Such power plants will also be required to submit an undertaking mentioning that they will not import/curtail the import of coal for the financial year 2021-22,” the discover stated.
On September 19, 2018 coal and power secretaries held a gathering and on the identical day the assembly of subgroup additionally occurred whereby, the matter of supply of home coal as import substitution was advisable to convey the extent of import dry fuel for mixing functions to the extent of zero.
Accordingly, the maharatna agency has taken all attainable efforts to obtain the identical.
The matter was additional mentioned by the coal and power ministries final 12 months and accordingly dry fuel is being provided to the power plants having FSA under import substitution as per their requirement relying on its availability.
Earlier, CIL stated that it has offered extra coal supply in the nation throughout 2020-21, which prompted prospects to decide 90 million tonnes of home coal as a substitute of importing it from overseas.
Coal India accounts for over 80 per cent of home coal output.
