The Karnataka government has recently sanctioned the procurement of 2.5 lakh metric tonnes of imported coal at the rate of $86 per tonne, as confirmed by Gaurav Gupta, the state's Additional Chief Secretary of the Energy Department. The decision was endorsed by the Karnataka Power Corporation Limited (KPCL), with a work order already issued, though the supply is yet to commence.

Gupta mentioned that the state had facilitated the order through tendering processes, refraining from disclosing the specific source of the coal. Typically sourced from Indonesia, the imported coal aims to fulfill the quota mandated by the Union Ministry of Power, stipulating a minimum utilization of six per cent imported coal in thermal power stations. Gupta highlighted the potential increase in power generation, estimating an additional 600 to 800 MW output from the existing 3,400 MW by incorporating imported coal into the thermal power stations.

Addressing the decision to import coal, Karnataka's Energy Minister K J George emphasized the quality inadequacies of Indian coal due to high ash content, necessitating the blending of different coal types. The Minister underscored the need for the Ballari power plant's functioning, which prompted the decision to import coal. He further elucidated that the Karnataka Power Corporation Limited, under the leadership of Chief Minister Siddaramaiah and himself as the vice-chairperson, passed a resolution to proceed with coal importation.

Additionally, Minister George highlighted the spike in power demand, escalating from around 10,000 MW to 16,000 MW per day due to inadequate rainfall in the state. To meet this augmented demand, the government has initiated power procurement agreements via barter systems with Punjab and Uttar Pradesh. The state is also securing electricity from Himachal Pradesh through conventional procurement methods, as Himachal Pradesh did not consent to the barter arrangement.

Pankaj Kumar Pandey, the Managing Director of Karnataka Power Transmission Corporation Limited, also noted that the state is prepared for the anticipated surge in electricity demand, estimated between 15,000 MW to 18,000 MW from February, and has made requisite arrangements to meet these projections.