India cancels coal import mandate amid soaring prices weak rupee
India has called off its plan to make coal imports mandatory, thanks to soaring global prices and a weaker rupee.
Instead, the spotlight is now on Coal India Ltd. to step up domestic production and keep power plants running.
This shift comes at a tricky time: coal reserves are at their lowest in almost five years, making it tough for the country's electricity supply.
India's power plants low coal stocks
The original idea was to mix imported coal with local supplies, but high costs made that impossible.
Nearly half of India's power plants now have critically low coal stocks (less than 25% of what they need).
September's worst power shortages in nearly a decade were driven by high electricity demand and weak hydropower, thanks to poor monsoons, but cooler weather ahead might give some relief.