Shortage looms, Maharashtra set to import coal

In 2015, the Union Ministry of Power asked the state to not import any coal and use domestic coal for power generation. However, the Mahagenco has seen a dip in the supply of domestic coal, giving rise to fears of a shortage. (Source: REUTERS/For representational purpose)

A LOOMING shortage in coal supply has pushed the state generation company to import coal, even as the central government had instructed it to use domestic coal. The state-owned generation company is set to import 1 million metric tonne of coal, a tender for which was floated in January. A senior government official told The Indian Express that the state has now sought the Union ministry’s permission to go ahead with the tender. “The ministry has given in-principle nod that generation companies can decide to import coal if there is a need. We are awaiting an official confirmation and the tender process is being carried out simultaneously,” said the official.

Last month, the state wrote to the ministry of power, requesting it to allow Mahagenco to go ahead with the import. In 2015, the Union Ministry of Power asked the state to not import any coal and use domestic coal for power generation. However, the Mahagenco has seen a dip in the supply of domestic coal, giving rise to fears of a shortage.

“The supply of domestic coal is not as expected and is short of a few rakes. With temperatures rising, the demand for power has shot up. There is a risk of shortage if the situation continues for too long,” said the official. Meanwhile, anticipating a shortage in power supply during peak summer weeks, the state distribution company has started rationing power. The Maharashtra State Electricity Distribution Company Ltd (MSEDCL) has stocked up hydro power for future use. Moreover, the discom has signed short-term purchase agreements to buy power at lower costs at the time of a shortage, if there is any. “Currently the discom is prepared but 1 MMT coal import will act as a buffer and ease the mounting pressure on Mahagenco,” said the official.

Last year, a similar shortage had forced the discom to carry out load shedding across the state. While in May last year the discom fell short of around 4,000MW, a coal shortage in September and October had led to outages in rural as well as urban areas.