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Coal India steps up supplies to power plants to avert crisis

The miner has accelerated its production to 26.4mt in the first half, registering a 27 per cent year-on-year growth
Coal India said it was co-ordinating with the ministries of coal, power and railways to build up stocks at power plants.
Coal India said it was co-ordinating with the ministries of coal, power and railways to build up stocks at power plants.
Representational File Picture

A Staff Reporter   |   Calcutta   |   Published 20.04.22, 02:14 AM

Coal India on Tuesday said it has adopted a raft of measures to step up coal supply to power plants, with a searing heatwave across northern India triggering a power crisis across many states. 

The PSU miner said it has allocated 8.75 million tonnes (mt) of coal to state and central power generating companies till May 31 for transportation through road and rail — of this 3.25mt has not been picked up by the power companies in the earlier rounds and 5.5mt the new offer.

Supplies to power plants has risen 14.2 per cent in the first half of April compared with the same period a year ago.

The miner has accelerated its production to 26.4mt in the first half, registering a 27 per cent year-on-year growth.

Coal India officials said that the mercury levels have soared above 41 degrees centigrade in Delhi, Punjab, Haryana, Uttar Pradesh and Rajasthan.

With temperatures climbing, the country’s power generation was 9.5 per cent higher at an average of 4.53 billion units(bu) in the first half against 4.13bu a year ago.

Coal India said it was co-ordinating with the ministries of coal, power and railways to build up stocks at power plants. The pressure would ease if power plants met their requisite imports set for the year.

Nomura in a research report has pointed out that the impending coal shortage in India can become “another stagflationary shock” as the diversion of the fuel from non-power sectors to fulfill consumer needs will weigh on industrial output and increase electricity costs.

Coal inventories at domestic power plants have fallen to nine days as of mid-April, which is lower than the average stock of 17 days held in April over the last five years, the research firm said in a report.



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