India has asked power producers to import up to 10% of their coal needs amid fuel shortages and has warned states that federal companies will curb their power supplies if they are found selling electricity on power exchanges to cash in on surging prices.
Federal government-controlled power producers such as NTPC Ltd and Damodar Valley Corp, sign long-term power purchase agreements with distribution companies for the sale of most of their power output.
The ministry said if any state had a surplus of power, it should inform the federal government which would allocate that electricity to states that needed it.
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