The Coal Trader

Indian Gov’t to request imported coal-based power plants change technology

Coal and mines minister Pralhad Joshi on Thursday said that the government will make a plea to imported coal-based power plants to change their technology and design so that those can be run on domestic coal. While highlighting the abundance of fossil fuel in the country, the coal and mines minister said the request will be made in a year or two.

“We will request to change the technology, and design of imported coal-based power plants. The country will have so much coal,” the minister told reporters here.

Coal, whether domestic or imported, is procured by thermal power plants –domestic coal-based plants or imported coal-based plants — separately and as per their requirements.

As coal has been under open general licence since 1993, thermal power plants and generators have been regularly importing coal as per their preference and need, based on their commercial prudence.

“We are trying to address the logistic problem through two to three corridors and we are also investing in (other) issues …. If all those things happen, then there is absolutely no need for imported coal stock,” the minister explained.

There are several power plants based exclusively on imported coal. In addition, the domestic coal-based (DCBs) plants have been importing coal for blending purposes since 2009.

Joshi further said, “We will request and not make it compulsory… They will have to (change the design/technology). We can’t compel private people.”

The minister had earlier stressed that the government aims to reduce the import share of coal to two per cent in the next financial year and finally reduce it to zero in the financial year 2025-26.

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