The Centre on Saturday issued a circular urging the states to take action against imported coal-based power plants that are not maintaining coal stocks and not supplying power as contracted citing high costs of imported coal.

Amid a spike in global coal prices and increasing demand for power in the country, the power ministry said it will not be possible to supply coal other than on a proportional basis to make up for any shortfall.

The ministry of power in a statement said it is monitoring the coal supply situation in the country and has taken steps to ensure adequate supply and stocks based on coal received from Coal India, Singareni Collieries Company and captive coal mines.

Central Electricity Authority data shows that as many as 83 thermal power stations are in a ‘critical’ stock situation, with stocks less than 25 per cent of their requirement.

This shortage persists despite the fact that CIL is likely to end the fiscal with the highest ever production of 630 mt and has also been making the highest dispatches so far in the year.

Key coal prices hit record levels in the wake of Russia’s invasion of Ukraine as utilities in Europe, along with other major consumers, looked for alternatives to cargoes from Russia.

The fossil fuel contributes nearly 70 per cent to India’s electricity supply and most power producers import the fuel to blend with domestic coal to generate electricity.

Russia accounts for around 20 per cent of global thermal coal exports. Even though India doesn’t import coal from Russia, the surge in its prices globally will have a cascading effect on the price discovery front in those origins where it imports from.

According to the reports, India ships in high-grade coal from Indonesia, Australia, and South Africa.

Analysts said for the power sector, there are no major concerns from the higher international coal prices, but the non-power sector is expected to face the maximum impact.