As India is staring at a power crisis amid a shortage of coal in power plants, the Union ministry of power has listed down four reasons for shortage
As India is staring at a power crisis amid a shortage of coal in power plants, the Union ministry of power has listed down four reasons for the depletion of coal stocks in the nation. An unprecedented increase in demand for electricity due to the revival of the economy is one of the four reasons for the power crisis in India, according to the Ministry of Power.
In a statement, the ministry said, "There are four reasons for the depletion of coal stocks at the power plant end unprecedented increase in demand for electricity due to the revival of the economy; heavy rains in coal mine areas during September 2021 thereby adversely affecting the coal production as well as despatch of coal from mines; increase in prices of imported coal to unprecedented high level leading to a substantial reduction in power generation from imported coal-based power plants leading to more dependence on domestic coal; non-building of adequate coal stocks before the onset of Monsoon."
The ministry further added that there are also legacy issues of heavy dues of companies in some states, such as Maharashtra, Rajasthan, Tamil Nadu, UP, Rajasthan, and Madhya Pradesh.
The ministry said that an inter-Ministerial sub-group led by the Ministry of Coal is monitoring the coal stock situation in the nation twice a week. It said that they constituted a Core Management Team (CMT) on August 27 to manage the stock of coal and ensure equitable distribution. CMT comprises representatives from MOP, CEA, POSOCO, Railways, and Coal India Limited (CIL).
"It was noted that on October 7, the total dispatch of coal by Coal India Limited (CIL) touch 1.501 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 the power sector to 1.6 MT per day in the next three days and thereafter try to touch 1.7 MT per day. It is likely to help in the gradual build-up of coal stocks at the power plant in near future. The coal supply, as well as the consequent power situation, is likely to improve," the ministry stated in the release.
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