CIL to continue with fuel supply to power plants under import substitution

State-owned CIL will continue with the supply of coal to the power plants under import substitution in the ongoing fiscal.

The development assumes significance in the wake of the PSU earlier stating

its drive for coal import substitution has gained tempo with consumers opting for about 90 million tonnes (MT) of indigenous coal in FY'21.

"The issue of supply coal in the FY 2021-22 was deliberated during the sub-group meeting...chaired by Joint Secretary, Ministry of Coal, wherein it has been decided to continue the supply of coal to the power plants under import substitution mechanism for FY 2021-22," Coal India Ltd (CIL) said in a notice.

CIL further said that the PSU and the Central Electricity Authority (CEA) have been directed to put notice asking to submit the requirement for 2021-22.

"Power utilities desirous of procuring domestic coal in lieu of imported coal are hereby requested to submit their...requirements of coal for FY 2021-22," the notice said.

It further said that the supply of coal to power plants would be made strictly as per availability and they will have to honour their fuel supply agreement (FSA) commitment before lifting coal under import substitution.

"Such power plants will also be required to submit an undertaking mentioning that they will not import/curtail the import of coal for the financial year 2021-22," the notice said.

On September 19, 2018 coal and power secretaries held a meeting and on the same day the meeting of subgroup also took place wherein, the matter of supply of domestic coal as import substitution was recommended to bring the level of import dry fuel for blending purposes to the level of zero.

Accordingly, the maharatna firm has taken all possible efforts to achieve the same.

The matter was further discussed by the coal and power ministries last year and accordingly dry fuel is being supplied to the power plants having FSA under import substitution as per their requirement depending on its availability.

Earlier, CIL said that it has provided additional coal supply in the country during 2020-21, which prompted customers to opt 90 million tonnes of domestic coal instead of importing it from abroad.

Coal India accounts for over 80 per cent of domestic coal output.