India grants temporary reprieve to imported coal-based power plants, allowing them to operate at maximum capacity.

India’s government has extended the mandate for imported coal-based power plants to operate at full capacity until February 28, 2024. The move is aimed at ensuring sufficient electricity supply ahead of peak winter months. The country’s coal-fired power output had fallen for the second straight month in September due to slower growth in electricity use and a surge in solar generation. India’s imports of thermal coal also plunged 31.8% in October, the fastest rate of contraction in 15 months. However, the country’s overall coal-based power generation rose by 5% over the period of April-September 2024. This development will benefit power companies such as Tata Power, Adani Power, and Vedanta, which had earlier been directed to operate their imported coal-fired plants.