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Govt directs imported coal-based plants to operate at full capacity till September

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Notification 03 Apr 2024 01:02 PM IST The Hindu BusinessLine

Power plants that rely on imported coal must run continuously through September in order to meet the growing electricity demand, as per government orders.

The power ministry announced in a statement that it will prolong Section 11 of the Electricity Act until the end of September. The mandate is currently in force till June. The ministry will investigate whether gas-based power facilities also need to follow a similar regulation.

This development occurs at a time when the demand for power has been rising and is predicted to rise even more as summer approaches. Peak power consumption is predicted to reach 260 GW this summer, much exceeding last year's record high of 243 GW.

The Act allows the government to instruct a power-generating company to operate and maintain any generating station in extraordinary circumstances. Due to the high price of imported coal and its lower viability, imported coal-based plants may tend to operate at levels below their maximum capacity or even shut down.

On Tuesday, the union minister for power and new and renewable energy, RK Singh, also directed a review of the operationalisation of gas-based capacity during the summer season. The power ministry has also decided to explore the possibility of harnessing any surplus power that may be available with captive generating stations.

The Indian Metrological Department has projected higher-than-normal maximum and minimum temperatures across the country this summer, except in some isolated areas.