The Center asked the generators, including NTPC, Tata Power and Reliance Power, to reduce imports of dry fuel for blending purposes and to substitute it with domestic coal, an official said.
Development assumes importance in the wake of Prime Minister Narendra Modi yesterday giving directions for targeting the substitution of thermal coal imports, particularly when there is a large inventory of coal stocks available in the country this year.
"All the generating companies (Gencos) who are importing coal for blending purposes may make best efforts to replace their imports with domestic coal," an official said.
The Government also indicated that, in the event that generators find it difficult to obtain the required quantity and quality of coal from coal companies or logistic bottleneck, the matter may be brought to the attention of the Centre.
The matter will be dealt with by the relevant entity so that the issue can be resolved, the official said.
Thermal power plants have been encouraged to import coal for blending purposes if and only if the necessary quantity and quality of domestic coal is not made available, the official said.
At the one hand, the country has more than enough coal stock, while at the other hand, it is struggling with a dropping demand for power due to coronavirus-induced lockdown.
Coal Minister Pralhad Joshi wrote to state chief ministers last month asking them not to import dry fuel and take domestic fuel supplies from state-owned Coal India Ltd (CIL), which has abundance of fossil fuel.
In an effort to boost the demand for coal that has been hit by the ongoing lockdown, the government has also announced a series of measures, such as increased supply of dry-fuel to link consumers.
Joshi also announced a number of relief measures for consumers of CIL, including the power sector, as a result of the coronavirus situation.
The Ministry also approved the relaxation of the quantity of coal for the consumers of linkages.
