In an internal power ministry letter, India used an emergency statute to require power plants that burn imported coal to maximise output before an anticipated record rise in electricity usage this summer. Since they have found it difficult to compete with power produced from inexpensive domestic coal, several of India's power plants that use imported coal, such as those owned by Adani Power and Tata Power in the western state of Gujarat, have not functioned at full capacity
recently. India's intentions to utilise the law to increase coal power output. The ministry stated that it anticipates all imported coal-based power plants to run at maximum efficiency and to sell electricity to customers on exchanges. The 17 gigawatt capacity of imported coal plants in India.
On March 16, the regulation will go into force, providing companies time to acquire coal before the anticipated increase in usage. The deadline for its expiration is June 15. According to the notice, a government-appointed panel will determine the variable tariff for these facilities. The panel will also determine the variable tariff for each plant using the index with the lowest cost of imported coal.
The notice stated that India will need to operate thermal capacity of 193 gigawatts in April to meet the ministry's predicted peak demand of 229 gigawatts. In the fiscal year that ends in March 2024, India expects its power plants to burn roughly 8% more coal, with rising economic activity and unpredictable weather continuing to drive up demand for electricity. This is the second time in as many years that the emergency law has been used.
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