CIL has been mandated by the Government to replace at least 100 million tons (MT) of imports of domestically produced coal in the current fiscal year.
Coal India has asked non-regulated (NRS) consumers who import coal for blending or direct use to meet their fuel requirements domestically through its e-auction schemes to minimize foreign exchange costs.
Development assumes importance as Coal India (CIL), which currently accounts for more than 80 percent of domestic fuel output, has enough fuel to meet demand.
In a notice to its NRS consumers on Tuesday, the Maharatna company stated that “it has been noted that several non-power plants in India are importing coal from different countries for blending or direct use.
”A need has arisen for consumption of domestic coal instead of imported coal to save valuable foreign exchange and as sufficient domestic coal is available with Coal India.”
In view of the above, it asked NRS consumers to comply with their import substitution requirements through various available e-auction schemes, such as spot e-auction and exclusive e-auction, which are regularly conducted by CIL subsidiaries, which have been advised to offer adequate quantities to meet any additional requirements.
“Therefore, consumers are requested to contact CIL coal companies for placing their demands through e-auctions,” the notice said.
CIL has been mandated by the Government to replace at least 100 million tons (MT) of imports of domestically produced coal in the current fiscal year.
Previously, the center also asked power generators, including NTPC, Tata Power and Reliance Power, to reduce the import of dry fuel for blending purposes and to replace it with domestic coal.
The power sector is a major user of coal. Prime Minister Narendra Modi has also given directions to target the substitution of thermal coal imports , especially when there is a large stock of coal available in the country this year.
Previously, Coal Minister Pralhad Joshi had written to the Heads of State asking them not to import dry fuel and to take domestic fuel supplies from CIL, which has abundance of fuel.
The country’s coal imports increased marginally by 3.2% to 242.97 million tons ( MT) in 2019-20.
India aims to push ‘avoidable coal imports’ to zero by 2023-24 in the midst of an excess of fuel stock.
