Punjab disagrees with Centre’s imported coal blending directive

Punjab has voiced its disagreement with the Central Government’s directive to increase the blending of imported coal for thermal plants. Despite Punjab’s official communication expressing reluctance in importing coal, the Centre has mandated that thermal plants blend up to six percent of imported coal.
In a letter addressed to the Union Secretary of Power, Baldev Singh Sran, Chairman-cum-Managing Director of the Punjab State Power Corporation Limited (PSPCL), stated, “The current coal requirements for PSPCL’s state sector plants amount to 50 lakh metric tonnes per annum. The availability from PSPCL’s captive coal mine in Pachhwara, as per the approved mining plan, is 70 lakh metric tonnes per annum.”
However, the PSPCL strongly opposes this move, as it would entail an “additional financial burden of Rs 500 crore per annum, despite possessing a captive mine.”
The Union Ministry of Power recently issued a retive stating that all companies operating thermal power plants must import six percent of their coal, an increase from the previous four percent, until March 2024 to address any domestic coal supply shortages. The ministry also instructed imported coal-based units to continue operating until June 24.
The PSPCL asserts that since the state already has a captive mine, there is no need to import coal, which would only impose a financial burden on consumers. A senior PSPCL official stated, “The annual financial burden of imported coal will exceed Rs 500 crore, an unnecessary expense.”
The PSPCL also expressed concerns that imported coal would result in reduced coal production from the Pachhwara mine, which is not in the best interest of the nation and would raise power generation costs. The state awaits a response from the Ministry.
The Ministry of Coal has stated that it does not face supply issues and has sufficient coal availability to meet the rising energy demand in the country.
VK Gupta, spokesperson for the All-India Power Engineers Federation (AIPEF), commented, “This development raises questions about the actual status of coal supply in India. Imposing an additional load of imported coal on the state’s thermal power plants is not a suitable solution.”