India Shelves Mandated Coal Imports Amid Rising Costs

The Government of India has shelved a proposal that would have mandated coal imports to replenish dwindling stockpiles at domestic power plants. Officials had considered requiring power plants to blend imported coal grades with domestic supplies to alleviate a current supply crunch.

The government abandoned the plan after determining that current economic conditions made the move unfeasible. Rising seaborne coal prices and a weakening rupee have both increased the cost of incoming shipments, making mandated imports prohibitively expensive for the domestic energy sector.