In a letter dated February 25, the miners said that the power plants continue to use the existing stock despite requests to buy coal before the monsoon.
Coal India had warned the advisor to the federal power ministry in February impending fuel shortage Documents reviewed as utilities tap inventory and curb purchases despite increased coal-fired power generation Reuters Display.
India, which has the world’s fourth largest coal reserves, is facing fuel shortage and has Utilities urged to import coal Because supply is short in many plants.
State-run Coal India told the Central Electricity Authority (CEA) that it is “clear that a crisis is brewing” unless immediate action is taken to augment supply to power plants, according to a February 4 letter review. done. Reuters.
Coal India, the world’s largest coal miner, generally tells utilities to stock up before the annual monsoon season, when rains reduce production and make transportation more difficult.
A senior Coal India official said the company was more worried this year as coronavirus-related restrictions on coal-fired power generation were eased, while utilities tapped stockpiles instead of buying fresh supplies. Reuters.
During the first eight months of 2021, coal-fired power generation grew by about a fifth, accounting for 13.2% of the overall production growth. Coal accounts for over 70% of India’s total power capacity.
The company had also said it would increase supply in the power sector as utility purchases have slowed, adding that it “may take time” to complete power plants even if there is a sudden surge in demand.
In another letter dated February 25, the miners said that the power plants continue to use the existing stock despite requests to buy coal before the monsoon.
A senior Coal India official wrote to CEA’s Director of Fuel Management, “Coal India is requesting the power houses to increase the stock at their power plants to prevent any future coal shortage crisis.”
CEA data shows that seven months after the letter was written, the average coal stock with Indian coal-fired plants declined to a near three-year low of six days in September, from 31 days in April 2020. was at a high level.
The data showed that as on September 13, nearly 100 of the 135 plants had less than seven days of coal stock left. Federal guidelines mandate utilities to keep supplies for at least two weeks.
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