Coal shortage: Union Min Joshi blames rains for deficit, cites load on domestic production

Union Minister of Coal Pralhad Joshi on Tuesday stated that there was a coal deficit due to rains which was resulting in an escalation of international prices. Union Minister Joshi said that imported coal power plants were put to a halt for a while or producing very short, establishing stress on domestic coal. 

"Due to rains, there was a shortage of coal, causing an increase in international prices from Rs 60 per ton to Rs 190 per ton. Subsequently, imported coal power plants are either shut for 15-20 days or producing very little. This put pressure on domestic coal," Coal Minister Prahlad Joshi said.

'Rising pressure on Indian domestic coal market'

The present coal shortage comes in line with the sudden revival of India's economy leading to an increase in the power demand. The power consumption in the past two months has been on the rise. Meanwhile, coal prices in the global market soared by 40%, and India's imports fell.

Eventually, power plants that rely on imported coal are now dependent on Indian coal, escalating pressure on the domestic market, Also, heavy rains in areas near coal mines in September further stressed the domestic coal markets.

"International prices of imported coals soared all of the sudden and power plants that relied on foreign coal stopped electricity generation. Because they have stopped production, the entire load is on domestic coal," Joshi had stated earlier.

Refuting the allegation of states, UTs claiming the Centre's inefficiency in supplying adequate stock of coal to run its power plants, Joshi said, "Yesterday (October 11) we supplied 1.94 million tons, the highest ever supply of domestic coal. As far as states are concerned, this year till June we requested them to increase stock, some of them went on to say that "please do a favour, don't send coal now," Joshi said.

Reports of power crisis across the country due to coal shortage

With states from Delhi to Andhra Pradesh sending warnings of a developing power crisis due to a shortage of coal, the central government on October 10, reviewed the situation to ensure that power plants have enough feedstock to generate electricity. The present coal shortage seemingly comes after the sudden revival of India's economy leading to an increase in the power demand. The power consumption in the past two months has been on the rise. Meanwhile, coal prices in the global market soared by 40 per cent, and India's imports fell.

Delhi CM Arvind Kejriwal, Punjab CM Charanjit Channi, and Andhra Pradesh CM YS Jagan Mohan Reddy sought Prime Minister Narendra Modi's intervention in the concerns pertaining to the developing energy crisis in their respective states. Earlier on Sunday, Union Power Minister RK Singh also dismissed reports and of the shortage of coal in the country. Unlike the situation in China, India has a sufficient amount of coal to fulfill the increasing demand as well, he said.

Inputs: ANI

Image: PTI/ANI