Unprecedented Increase in Power Demand Behind Coal Shortage, Says Centre as States Raise Blackout Concerns

The daily consumption of electricity has crossed 4 billion units per day and 65 per cent to 70 per cent demand is being met by coal-fired power plants only, increasing dependence on coal.

Author: India.com News Desk Edited by: Priyanka

Updated: October 10, 2021, 12:10 AM IST

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https://www.india.com/news/india/unprecedented-increase-in-power-demand-behind-coal-shortage-says-govt-as-states-raise-blackout-concerns-5047817/ Copy

New Delhi: The coal supply situation for power plants is likely to improve soon, the central government said on Saturday after several states raised concerns over depleting stocks and expected blackouts. Delhi government has said the city may face power crisis in two days if adequate coal is not provided to power plants. Frequent power cuts were being reported from Punjab too. The Power Ministry, in a statement, said the coal supply issues are linked to rise in prices of imported coal, among other factors.

There are four reasons for depletion of coal stocks at power plants – unprecedented increase in demand of electricity due to revival of economy, heavy rains in coal mine areas, increase in price of imported coal and legacy issues such as, heavy dues of coal companies in certain states, like Maharashtra, Rajasthan, Tamil Nadu, Uttar Pradesh, Rajasthan and Madhya Pradesh, the Power Ministry said in a statement today.

An inter-ministerial sub-group led by the Coal Ministry has been monitoring the coal stock situation twice a week, the government said. The ministry and Coal India Ltd have assured that they are making best efforts to increase dispatch to power sector to 1.6 million tonnes or MT per day in the next three days and thereafter try to reach 1.7 MT per day.

The daily consumption of electricity has crossed 4 billion units per day and 65 per cent to 70 per cent demand is being met by coal-fired power plants only, increasing dependence on coal. The import of coal has decreased compared to 2019-20 due to import substitution and rising prices of imported coal. This reduction is compensated by domestic coal for power generation, in turn further increasing the demand for domestic coal.

The Ministry of Power has issued guidelines on Friday for operationalizing optimum utilization of generating stations as per the requirements in the Electricity Grid. These guidelines will enable imported coal based plants (having sufficient coal) to operate and ease out the burden on domestic coal, they added.

(With inputs from agency)