Policy flip-flop over coal import puts state, private gencos in a spot

CIL to import coal for states; working capital pressure worries IPPs

Constant policy flips over coal imports has fazed state-owned power generating companies (gencos) and independent power producers (IPPs) with a cumulative capacity of 108 gigawatt. The Centre, on the one hand, is pressuring them into using imported coal — 5x costlier than domestic fuel. On the other, state governments are wary of paying for imported coal, which will crank up electricity costs.

At the same time, two weeks after state and privately-owned gencos were told to import coal for 10 per cent blending, the Union Ministry of Power has now asked them to keep their tenders ‘in abeyance’. The Centre has