Updated October 10th, 2021 at 09:39 IST

Centre outlines 4 reasons behind coal shortage amid warning of power crisis in country

The Power Ministry gives rise in demand for electricity, heavy rains in coal mines, hike in prices of coal, non-building of coal stocks as reasons for crisis

Reported by: Nikita Bishay
Image: PTI | Image:self
Advertisement

The Ministry of Power on Saturday listed four reasons for the depletion of coal stocks, ne being an unprecedented rise in demand for electricity. The demand for electricity has been witnessed since the revival of the economic state of the country further pressurising the available coal stocks. Earlier, the Centre's response arrived after the state governments of Delhi, Andhra Pradesh and Punjab outlined the issue of coal shortage in power plants after which an inter-ministerial subgroup has been constantly monitoring the coal stock situation at least twice a week. 

According to an official release by the Power Ministry, four reasons behind the depletion of coal stocks include:

  • An increase in demand for electricity due to a revival of the economy after the second wave of COVID-19. 
  • Heavy rainfall in the coal mine areas during the month of September 2021, thereby affecting the coal production as well as the dispatch of coal from mines.
  • An increase in the prices of imported coal to an unprecedented high mark leading to a substantial reduction in power generation from imported coal-based power plants, therefore, leading to more dependence on domestic coal. This has also contributed to the coal shortage. 
  • Next, the non-building of adequate coal stocks before the onset of monsoon has added to the impact on the coal mines.

Initiatives by Centre for monitoring coal stocks

Meanwhile, a Core Management Team (CMT) has been initiated by the Ministry of Power and Central Government for managing the coal storage and its distribution.

As informed in the official release by the Power Ministry, the management team was formed earlier on August 27 which comprises representatives from different ministries including the MOP, CEA, POSOCO, and the Railways and Coal India Limited. The team has been given the task of monitoring and managing the coal stocks on a daily basis and further follow up with these with ministries. Earlier on Saturday, a review meeting was held for understanding the status of the work undertaken.

Concerning the same, the Coal Ministry along with the Coal India Limited has ensured to increase the dispatch of coal to power sectors which would comprise up to 1.6 MT per day in the next three days and will try to touch the mark of 1.7 MT per day. This supply will help in building up coal stocks at power plants in the upcoming days. 

Meanwhile, the Ministry of Power while pointing out the revival of the economy after the second wave of COVID-19 said that the daily consumption of electricity has crossed above 4 billion units a day, and 65% to 70% of the demand is met by coal-fired power generation. It is thereby increasing the dependence on coal. 

(With ANI inputs, Image: PTI)

Advertisement

Published October 10th, 2021 at 09:39 IST