India Pushes for Domestic Coal Adoption in Imported Coal-Based Power Plants

In a bid to reduce India's reliance on imported coal, the government plans to request imported coal-based power plants to modify their technology and design to enable them to operate on domestic coal. Coal and Mines Minister Pralhad Joshi announced this initiative, emphasizing the country's abundant fossil fuel reserves.

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Abundant Domestic Coal Reserves

Highlighting India's rich coal reserves, Minister Joshi stated that the request to switch to domestic coal will be made within the next one to two years. He expressed confidence that the country will have sufficient coal to meet its energy needs.

Separate Procurement of Domestic and Imported Coal

Currently, thermal power plants procure domestic and imported coal separately based on their requirements and commercial considerations. Since 1993, coal has been under open general license, allowing thermal power plants and generators to import coal as per their preferences.

Addressing Logistic Issues

To reduce the dependency on imported coal, the government is addressing logistic challenges by developing multiple corridors and investing in infrastructure. Minister Joshi believes that these measures will eliminate the need for imported coal stock.

Exclusive Imported Coal-Based Power Plants

While some power plants rely exclusively on imported coal, domestic coal-based DCBs plants have also been importing coal for blending purposes since 2009.

Voluntary Request, Not Compulsory

Minister Joshi clarified that the government will request, rather than mandate, imported coal-based power plants to make the necessary changes. He acknowledged that private entities cannot be compelled to comply.

Reducing Import Share of Coal

The government's long-term goal is to reduce the import share of coal to two percent in the next financial year and eventually eliminate it by the financial year 2025-26.