Indian govt extends directives for imported coal-based plants amid power demand surge

In a significant move aimed at addressing the country's growing energy demands, the Ministry of Power (MoP) has extended the operational directive for imported coal-based (ICB) generating companies until 31st December 2024.

This extension follows a series of directions originally issued by the MoP in February 2023, with subsequent clarifications and extensions provided in March and April of the same year. The initial directive was valid until 15 June 2023 and has since been extended multiple times, most recently up to 15th October 2024. Given the continuous surge in power demand, the government has deemed it necessary to prolong the directives until the end of the year.

The directive requires selected ICB plants to operate based on Benchmark Energy Charge Rates (ECRs), which the ministry issues on a fortnightly basis. These directives are specifically aimed at managing the country's power supply, particularly from major ICB plants such as Coastal Gujarat Power Ltd, Adani Power Mundra Ltd, and JSW Ratnagiri Ltd, among others.

This decision highlights the government's focus on ensuring a stable energy supply, despite the challenges posed by imported coal-based generation, which remains vital in meeting the country's electricity needs.

Approved by the Competent Authority, the extension further emphasises the ministry's commitment to safeguarding India's energy security during periods of heightened demand.

The ministry will examine whether directions under Section 11 of the Electricity Act, 2003, under which the appropriate government may specify that a generating company shall, in extraordinary circumstances, operate and maintain any generating station in accordance with the directions of that government.