Lok Sabha Question No. 2883 (UNSTARRED), answered on 2022-08-03
Subject: Imported Coal
Ministry: COAL
Asked by: Sushil Kumar Singh

## GOVERNMENT OF INDIA MINISTRY OF COAL

## LOK SABHA

## UNSTARRED QUESTION No.2883 TO BE ANSWERED ON 03.08.2022

## Imported Coal

## 2883. SHRI SUSHIL KUMAR SINGH:

Will the Minister of COAL be pleased to state:

- (a) whether  power  producers  will  have  to  cough  up  ten  times  the  price  of domestic coal to procure imported coal for 10% blending as mandated by the Centre;
- (b)
- if so, details thereof;
- (c) if  not,  whether  the  Government has tried to ascertain by extent to which the imported coal especially through Pt Bara Daya Energi will be expensive as compared to the domestic coal for the Indian consumers; and
- (d) if so, the details thereof?

## Answer

## MINISTER OF  PARLIAMENTARY AFFAIRS, COAL AND MINES (SHRI PRALHAD JOSHI)

(a)to(d): About  80% of coal produced domestically is supplied to power sector. Some TPPs (Thermal Power Plants) are designed for exclusively using high GCV imported  coal  while  other  TPPs  have  also  been  importing  coal  for  blending purposes for various reasons. In order to address increased coal requirements following recent surge in power demand, Ministry of Power issued an advisory on 28.04.2022 for power plants to import 10% coal for blending purpose. Ministry  of  Power  through  its  latest  advisory  dated  01.08.2022  to State  Governments  and  State  GENCOs  and  IPPs  has  decided  that  now onwards, States/IPPs and Ministry of Coal may decide the blending percentage after  assessing  the  availability  of  domestic  coal  supplies.  Through  another advisory of 01.08.2022 to NTPC and DVC, the Ministry of Power has inter alia decided to direct the NTPC and DVC to bring down the blending percentage to 5% at Genco level and keep monitoring the situation closely.

Domestic  coal  is  supplied  to  GENCOs  at  notified  prices  except  IPPs  and are  revised only periodically. On the other hand, the international price of coal varies  frequently  based  on  demand  supply  situation,  shipping  and  logistic considerations and other international factors. In recent times, the international price of coal has shot up steeply. Various Central GENCOs, State Governments and State GENCOs are involved in the import of coal each year and  the  rates   at  which  they  import  coal  are  not  shared  by  them  with  the Ministry. However, overall coal import data obtained by Ministry of Coal from DGFT  for  past  years  shows  that  the  average  price/rate  of  imported  coal  is always higher than that of the domestic coal.

As per the advisory of Ministry of Power dated 28.04.2022, the import of coal could be made by the powerhouses through their own means or through coal import to be made by Coal India Limited (CIL). Accordingly, CIL was advised by Ministry  of  Coal  to  act  as  a  central  agency  for  import  of  coal  for  willing consumers. In terms of the above advisory of the Government, CIL floated open tenders for import of coal for the period from July'22 - June'23 for supply to the  willing  powerhouses  and  awarded  the  assignment  to  the  successful  L1 bidder through the aforesaid tender .

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