The country is expected to face coal shortage during the third quarter of 2022. In addition, the electricity demand will also increase during this period.
The power ministry in the letter said that almost all the states had suggested that multiple coal import tenders by the states would lead to confusion and the decision was taken after seeking centralized procurement through Coal India.
Power Crisis in India
India has in recent days increased pressure on utilities to increase imports to mix with local coal. It also said that the supply of domestic mined coal would be cut if power plants did not manufacture coal inventories through imports.
The power ministry on Saturday asked states to suspend tenders as part of the process.