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Business News/ Industry / Energy/  Amid looming power crisis, govt amends methodology for use of coal
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Amid looming power crisis, govt amends methodology for use of coal

Larger visibility has been given to the power plants by extending the period of supply of coal from 1 year to 3 years, the Ministry of Power said in an official statement

A flume of emissions flow from a stack at a coal-fired power plant, (AP)Premium
A flume of emissions flow from a stack at a coal-fired power plant, (AP)

Amid fears of a new power crisis that could roil Asia’s third-biggest economy, the Power Ministry on Friday amended the methodology for use of coal (allocated to states) by Private Power generating stations (IPPs). 

Larger visibility has been given to the power plants by extending the period of supply of coal from 1 year to 3 years, the Ministry of Power said in an official statement. 

The Power Ministry has further made amendments in the timeline of bidding process which has been reduced from 67 days to 37 days. 

The measures have been taken for ensuring more efficient utilisation of domestic coal, the ministry informed.

“The Government has taken these measures in order to optimally utilise the railway infrastructure for maximum transportation of coal to the power plants," it further said. 

The ministry added that this would enable states to optimally utilize their linkage coal in the plants nearer to the mines as it would be easier to transmit electricity instead of coal transport to far off states.

An already sweltering summer and acute coal shortages are triggering blackouts across parts of India.

A surge in demand for electricity has prompted states including Punjab and Uttar Pradesh in the north and Andhra Pradesh in the south to cut off supply. 

The disruption, as long as eight hours in some places, is forcing customers to either endure the heat or look for costlier back-up options.

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Published: 22 Apr 2022, 09:33 PM IST
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