All India Power Engineers Federation (AIPEF) has demanded an independent enquiry into shortage of coal at various thermal power plants as well as the imports of dry fuel in the country. It also said the central government should bear the additional cost of coal imports by power generation utilities. It also said that certain entities are benefitting from rising coal imports and demand from a number of power producers leads to an increase in the price of the dry fuel in the international market.
According to AIPEF, imports of coal have increased after the government has made it mandatory for imported coal based plant to run with full capacity and instructed the domestic coal based plants to increase blending of imported coal from 4 per cent to 6 per cent. In case the import of fuel is made mandatory for generation companies (gencos) then the Government of India should bear the additional cost so that it is not passed on to distribution companies (discoms) and the consumers. Also, it pointed out that power stations were required to install a system for sulphur removal since imported coals have sulphur content unlike Indian coals.
In March 2023, the government issued a directive under Section 11 of the Electricity Act, asking imported coal-based (ISB) power plants to operate at full capacity amid a surge in electricity demand and inadequate domestic coal supplies. Initially, the validity of the order was from March 16 to June 15, 2023. It was later extended till June 2024.
