The Central Government has directed all imported coal power plants to operate at full capacity since power demand has increased by about 20% in energy terms, according to a statement issued by the Ministry of Power on Thursday.

“All imported coal-based power plants shall operate and generate power to their full capacity. Where the imported coal-based plant is under NCLT, the Resolution Professional shall take steps to make it functional,” the government ordered, invoking Section 11 of the Electricity Act, 2003.

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With the electricity crisis looming, all states and gencos relying on domestic coal have been ordered to import at least 10% of their coal requirements for blending, according to the Centre.

“The demand for power has gone up by almost 20% in energy terms. The supply of domestic coal has increased but the increase in the supply is not sufficient to meet the increased demand for power. This is leading to load shedding in different areas. Because of the mismatch between the daily consumption of coal for power generation and the daily receipt of coal at the power plant, the stocks of coal at the power plant have been declining at a worrisome rate,” the Power Ministry explained.

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The facilities have been instructed to first supply power to PPA holders and then sell the surplus to power exchanges. According to the statement, if generators/group companies possess coal mines in other countries, mining profits will be deducted in proportion to their holdings.

PPA holders must pay the producing company on a weekly basis, either at the benchmark rate or at a mutually agreed-upon rate, according to the statement. If discoms and states are unable to purchase electricity, it will be sold in power exchanges.

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In the event of unusual circumstances, according to CNBCTV18, the government can direct generating firms to operate and maintain their generating stations in line with Section 11 of the Electricity Act.