India plans to use an emergency law next month to force power plants running on imported coal to maximize output, two government sources told Reuters on Monday, with record consumption expected this summer. In preparation for
Several Indian coal-fired plants, including those owned by him Adani Power And Bye Electricity in India’s western Gujarat state has not operated at full capacity in recent years as they have found it difficult to compete with electricity generated from cheap domestic coal.
Read also: Govt, CIL considering revision in coal prices
Sources said officials from the federal power ministry would work with those involved in debt restructuring of financially stressed power plants to make them functional.
Read also: India to boost coal imports to deal with harsh weather, freight issues
The ministry did not immediately respond to a request for comment.
India expects its power plants to burn about 8% more coal in the fiscal year ending March 2024, as increased economic activity and uncertain weather continue to drive demand for electricity.
Sources said India’s industrialized western states of Maharashtra and Gujarat, which have seen huge increases in electricity demand in recent months, have sought to implement the law. The law is being invoked for the second time in as many years.
The text of this story is published from a wire agency feed without any modification. Only the headline has been changed.
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