Coal Imports for Thermal Power Plants in India & Consumption of Domestic Coal

The concern of GoI is to ensure sufficient availability of coal to Thermal Power Plants (TPPs) so that the demand for electricity may be met. Coal, whether domestic or imported, is procured by Thermal Power Plants [Domestic Coal Based (DCBs) plants or Imported Coal Based Plants (ICBs)] separately and as per their requirements. 

As Coal is under open general licence (OGL) since 1993, thermal power plants / generators have been regularly importing coal as per their preference (imported coal has high Gross Calorific Value and therefore is of better quality) and need, based on their commercial prudence. There are several Power Plants based exclusively on imported coal.

In addition, the Domestic Coal Based (DCBs) plants have been importing coal for blending purpose since 2009. The imports for blending varied between a peak of 47.6 Million Tones (MT) in 2015-16 to 23.8 MT in 2019-20. In 2020, Ministry of Power advised States to reduce imports for blending; as a result, the imports declined to 8.1 MT in the year 2021-22. Information regarding coal imports by DCBs and ICBs is regularly collected and monitored by Central Electricity Authority.

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