India experienced a notable 46.57 percent decline in coal import for blending between April and October, a stark decrease from the corresponding period of the previous fiscal year, revealed the Ministry of Coal in a statement issued on November 29. Despite being the world's third-largest energy consumer, with a consistent annual electricity demand surge of around 4.7 percent, the country managed to register an 8.18 percent upsurge in overall power generation during the same period.

This surge in power generation, covering various sources such as thermal, renewable, among others, saw an 11.16 percent increase specifically in coal-based power generation from April to October compared to the previous year. The Ministry of Power, in response to a coal shortage at thermal power plants in September-October, mandated all thermal generating stations, including Independent Power Producers (IPPs), to blend imported coal at 6 percent of their total capacity until March 2024, previously up from 4 percent.

Moreover, the government extended the emergency clause (Section 11) of the Electricity Act, 2003, instructing imported coal-based power plants to operate at full capacity until June 30, 2024. This hike in coal-fired power generation stemmed from soaring temperatures and delayed monsoons in India's Northern region, affecting hydropower output. The resultant escalation in power demand post-Covid's resumption of full commercial activities had to be met, especially in the absence of energy storage solutions for renewable energy.

According to data shared by the Ministry of Coal, domestic coal-based power generation surged to 686.7 billion units (BU) between April and October 2023, marking an 8.88 percent increase from the corresponding period in the previous year. The government remains committed to augmenting coal production to bolster availability, thereby reducing reliance on imported coal and safeguarding foreign reserves, as stated by the ministry in its release.