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India puts coal import proposal on hold as costs rise
India has shelved a proposal to require power plants to import coal because high international prices and a weaker rupee have increased shipment costs, people familiar with the discussions said.
India has put on hold a proposal to require power plants to import coal to replenish dwindling stockpiles, people familiar with the discussions said. Elevated international prices and a weaker rupee have made overseas shipments more expensive.
The government had considered requiring plants to blend imported coal with domestic supplies to ease the fuel shortage. That proposal was suspended because of the high cost of imports.
Nearly half of India's power plants had critically low coal inventories as of October 17, with stocks below a quarter of required levels, according to power ministry data.
The coal ministry said a critical-stock designation serves as an early warning. It does not necessarily mean a plant is running out of coal or faces an imminent shutdown.
The ministry said plants with low inventories were being closely monitored and supplies redistributed to help maintain uninterrupted electricity generation.