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Coal India to import for first time since 2015 as power shortage looms

State-run Coal India, the world’s largest coal miner, would import the fuel for use by utilities, a Power Ministry’s letter seen by the Reuters showed on Saturday, as shortages raise concerns about renewed power outages. 

It would be the first time since 2015 that Coal India has imported the fuel, highlighting efforts by State and Central officials to stock up to avoid a repeat of April, when India had faced its worst power cuts in more than six years. 

“Coal India would import coal for blending on government-to-government (G2G) basis and supply … 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, top Union and State energy officials, including the Union coal secretary and the chairman of Coal India.

India is expected to face a wider coal shortage during the third quarter of 2022 due to expectations of higher electricity demand and stoking fears of widespread power outages. 

The Power Ministry said in the letter that the decision was taken after nearly all States suggested that multiple coal import tenders by States would lead to confusion and sought centralised procurement through Coal India. 

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