Coal Minister Pralhad Joshi wrote to Chief Ministers of all Indian states asking them to not import the dry fuel from outside and instead take domestic supply of fuel from state-owned CIL which has fossil fuel in abundance.
This development comes at a time of lockdown due to COVID-19 when demand for power has dropped significantly in the country.
The measure aims at giving a boost to domestic demand of coal amid the crisis. Government has taken some more measures for the same including an increase in the supply of dry fuel for linkage consumers and rebate in the amount of coal for linkage consumers of CIL.
It also announced that if CIL supplies more than the upper limit of the Fuel Supply Agreement (FSR), no performance incentives will be imposed on electricity consumers. "The situation will be reviewed again in September 2020 for further continuance", Joshi had said.