- Government issues ultimatum on electricity generation
- GenCos to increase capacity in two weeks or face a coal supply cut
- Government directs distribution companies to source for imported coal
India’s central government has issued an ultimatum to Generation Companies (GenCos) to meet energy demand within two weeks or face a cut in domestic coal supply to their power plants. The government also directed the captive coal mines to meet 85% of their production targets to the GenCos in a bid to ensure adequate supply. The government further directed Distribution Companies (DisCos) to use imported coal to meet demand within two weeks or face a cut in domestic coal supply.
In a statement issued by the Power Ministry, ”Captive coal mine companies have been given a notice of one week to increase their production to more than 85 per cent of their targets’.If they fail, the supply of linkage coal to such states/gencos would be regulated,”
Due to a sharp increase in the electricity demand, sixteen thermal power plants using up their coal stock, with 12 of these plants with only enough coal stock for one day. The government has ordered the coal supply to GenCos with a peak load factor of less than 40% and more than 18 days of coal stock to be cut in half.