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The ministry of power on Sunday asked the Central Electricity Authority of India (CEA) to compute the quantity of the coal consumed under the SHAKTI B policy mandating the blending of taking into account 10% imported coal for blending which is equivalent to about 15% of domestic coal in energy terms.

"Shakti B (viii) (a) is the window for power plants having untied capacity to bid for coal, to generate power using this coal and sell it in the exchange under the Day Ahead Market (DAM) or the Discovery of Efficient Electricity Price (DEEP) portal for short term Power Purchase Agreement (PPA)," said the ministry.

This determination of coal consumption during the said period will give a window of about three weeks for these plants to procure imported coal.

Considering the increasing demand for electricity and the failure of adequate coal supply from domestic coal companies, power ministry advised all Gencos, including independent power producers (IPPs), on 28 April to blend 10% of imported coal for power generation to supplement domestic coal supply.

States were advised to place orders by 31 May so that delivery of 50% quantity is ensured by 30 June.

Coal demand 

Meanwhile, the Centre has projected that the overall coal demand will outstrip the domestic supply in the current financial year.

The development assumes significance in the wake of certain parts of the country grappling with power outages in the wake of a shortage of coal.

While the overall coal demand in FY2022-23 is expected to be 1,029 million tonnes (MT), the domestic supply of fossil fuel is estimated to be 974 MT, according to the latest medium-term projections of dry fuel by the coal ministry.

Of the overall demand in the current fiscal, the power sector accounts for the major chunk of 735 MT and the remaining 294 MT by the non-power sector.

However, the estimated domestic supply of coal at 1,304 MT is expected to exceed the overall coal demand of1,134 MT in the next financial year.

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