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Is the Coal crisis real ?

  • Integrity Education, Delhi
  • 11, Oct 2021
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  • An inter-Ministerial sub-Group led by Ministry of Coal has been monitoring the coal stock situation twice a week.
  • It was noted that on 7th Oct,2021 total dispatch of coal by Coal India limited (CIL) touch 1.50 MT thereby reducing the gap between consumption and actual supply.
  • Ministry of Coal and CIL have assured that they are making best efforts to increase dispatch to power sector to 1.6 MT per day in next three days and thereafter try to touch 1.7 MT per day.
  • It is likely to help in gradual build up of coal stocks at the power plant in near future.
  • The coal supply as well as consequent power situation is likely to improve.

Reasons for reduction in Supply
There are four reasons for the depletion of coal stocks at the power plant end:

  1. Unprecedented increase in demand of electricity due to revival of economy
  2. Heavy rains in coal mine areas during September, 2021 thereby adversely affecting the coal production as well as despatch of coal from mines
  3. Increase in prices of imported coal to unprecedented high level leading to substantial reduction in power generation from imported coal based power plants leading to more dependence on domestic coal
  4. Non-building of adequate coal stocks before the onset of Monsoon.

Dependence on Coal for Power Generation
Out of the total Installed capacity of Power Generation, more than half (52.6%) is fulfilled by Coal based plants.