The trend assumes significance, as Coal India (CIL), which accounts for over 80 percent of domestic fuel production at present, has enough fuel to meet demand.
In a statement to its NRS consumers on Tuesday, the maharatna company said that “it has been observed that several non-power plants in India are importing coal from different countries for blending or direct use.
“There has been a need for consumption of domestic coal instead of imported coal to save valuable foreign exchange market and as sufficient domestic coal is available with Coal India.”
In light of the above, it requested NRS consumers to meet their import substitution claims through various available e-auction schemes, such as spot auction and exclusive e-auction, which are regularly managed by subsidiaries of CIL, which have been advised to offer sufficient quantities. to meet any additional requirements.
“Therefore, consumers are requested to contact CIL coal companies to make their demands through e-auctions,” the announcement states.
CIL has been mandated by the government to replace at least 100 million tonnes (MT) of imports with domestically produced coal in the ongoing fiscal policy.
The center had also previously asked electricity generating companies including NTPC, Tata Power, Reliance Power to reduce dry fuel imports for blending purposes and replace it with domestic coal.
The power sector is an important coal consumer.
Prime Minister Narendra Modi had also given directions to target thermal coal import substitution, especially when there is a large coal storage status in the country this year.
Coal Minister Pralhad Joshi had previously written to the Prime Minister’s Ministers asking them not to import dry fuel and take domestic supply of fuel from CIL which has the fuel in abundance.
The country’s coal imports rose marginally by 3.2 percent to 242.97 million tonnes (MT) in 2019-20.
India plans to bring ” avoidable coal imports ” to zero by 2023-24 amid abundance of fuel stock. PTI SIDE SIDE ANS
Disclaimer: – This story is not edited by Outlook staff and is automatically generated from news agency feeds. Source: PTI