Oct 6, 2021
By: Shadab Rabbani
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Power plants only had an average of four days' worth of coal at the end of September.
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Surge in power demand in post-monsoon season, low mining outputs in monsoon season and fall in imports due to high prices.
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About 66.4 per cent of electricity generation in India is done by coal-fired power plants.
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Around three-quarters of India’s coal demand is met domestically, but heavy rains flooded the mines and key transport routes.
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There has been a surge in electricity demands in the country, thanks to economic revival post the second wave of COVID and the addition of about 28.2 million consumers.
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As per Union Power Minister R K Singh, it could take five to six months for coal-fired power plants to secure enough fuel.
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Industries that run on coal like aluminium producers were impacted majorly after Coal India Ltd. curbed supplies of the fuel to prioritize deliveries to electricity generators.
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As per India’s coal secretary, Coal India should be able to increase supplies by the second week of October to cover the deficit at power plants.
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Electricity prices are likely to rise in the coming months for domestic consumers once the distribution utilities get regulatory approvals to pass on the cost.
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