India's big industrial states plan massive coal imports to stave off shortages

Move could push global coal prices to new highs

India's federal government has also asked the State governments of Karnataka, Uttar Pradesh, Madhya Pradesh, Punjab and Haryana to import a total of 10 million tonnes of coal.

While Punjab has committed to import 6,25,000 tonnes, the other States have not detailed any plans, the meeting minutes showed.

Maharashtra's expected 8 million tonnes of coal imports will be in addition to the 2 million tonnes it had already ordered, for which delivery is expected on May 8.

India had previously asked State government-run utilities to import 4% of their coal requirements for blending, but subsequently suggested last week that imports be boosted to 10% of the quantity needed to address soaring power demand.

Federal government-run NTPC Ltd., the country's top electricity producer, plans to boost coal imports to the highest level in eight years, Reuters reported last month.

Many Indian States including Andhra Pradesh in the south, Maharashtra in the west and Haryana, Punjab and Rajasthan in the north are already facing power cuts.

Utilities in Tamil Nadu have less than two days of rolling coal stock left on an average, while power plants in Maharashtra and Gujarat have about five days of inventory on an average. Federal guidelines recommend that states have at least 24 days of stock.