GENERAL26 Sept 2026
Govt weighs mandatory blending of imported coal at power plants, sources say
India may ask thermal power plants to blend up to 5% imported coal with domestic coal, the first such step since 2024. Plant coal stock has fallen nearly twice as fast as last year as September power demand stayed high, pushing spot power prices to their highest since 2022. Imports are also getting costlier. Watch for the official order before changing fuel plans.
Key Statutory Highlights
- Under the plan being discussed by the Power Ministry, thermal power plants would have to blend up to 5% imported coal with domestic coal.
- Coal inventories at power plants have fallen nearly twice as fast as a year before.
- Indonesian coal prices are up about a fifth since May, while Russian prices are 14% higher and South African rates are up 19%, traders say.
Actionable Advice for Taxpayers / Founders:If your business carries heavy power costs, keep track of the Power Ministry's final order and any tariff notices before you plan around this. The blending plan is still only under discussion, so treat it as a likely direction, not a confirmed rule.
Statutory Disclaimer: TaxQue Shorts are AI-assisted editorial briefs for compliance awareness. This brief has not passed every source check; confirm the original notification before acting. This does not constitute formal legal or CA counsel.
TaxQue News Desk
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