The financial costs associated with coal-fired electricity generation are set to rise given the need to increase coal import, according to a study report of Equatorials.

Mumbai India needs to stem an influx of cheaper imports from China and ease taxes on locally made solar cells to boost domestic manufacturing, Tata Power Solar Systems’ newly appointed CEO Ajay Goel told FE in a telephonic interview on Wednesday.

The government aims to turn India into a major solar power hub, targeting a 20-fold rise in sun-power generation to 20 Giga Watts (GW) by 2022. The country’s growing power needs and a shortage of coal and gas used in conventional thermal plants has highlighted the need to develop energy from alternative sources, such as sun and wind.

New Delhi American firms woo Indian buyers with long-term contracts, discounts

The US is emerging as a new source of coal supply for India as traditional exporters like Indonesia and Australia jack up their coal prices. American firms are trying to woo Indian buyers with offers of long-term contracts and discounts on international prices. In what marks a new trend in international coal trade, US-based FJS Energy has signed a $7 billion deal to supply 9 million tonnes a year coal to India’s Abhijeet Group for 25 years.

US-based FJS Energy LLC has signed a $7 billion (. 39,200 crore) multi-year coal supply agreement with India’s Abhijeet Group.

New Delhi Falling KG-D6 output, costly imported LNG hem in power plants

India's gas-based power stations are facing an uncertain future. Depleting output from Reliance Industries’ KG-D6 block and non-availability of adequate infrastructure to handle liquefied natural gas (LNG) imports are set to trigger suspension of about 7,000 MW of generating capacity, further widening the large gap between power demand and supply.

New Delhi Adani refused power supply to GUVNL due to rising coal prices

The Supreme Court on Monday admitted Adani Power’s appeal against the Appellate Tribunal for Electricity’s order asking it to supply power to state utility Gujarat Urja Vikas Nigam Ltd (GUVNL) at an agreed price of R2.35 per unit for 25 years. Adani Power had, in December 2009, terminated its 2007 power purchase agreement (PPA) with the state utility for supply of 1,000 mw power on the grounds that it would not be possible to supply electricity at the earlier agreed tariff of R2.35 per unit due to high coal prices.

The country witnessed a peak power shortage of 9% from April to June this year

The country suffered power generation loss of close to seven billion units from April to June this year, mainly on account of coal and gas shortage. "During April-June, 2012, the power utilities have reported a generation loss of about 2.9 billion units due to shortage of coal and 4 billion units due to shortage of gas," Minister of State for Power K C Venugopal said in the Rajya Sabha today.