Coal India Ltd., India’s coal mining behemoth, announced on Thursday, October 14, that it has temporarily ceased coal supplies to non-power users in light of the country’s ongoing battle with an acute coal shortage —deemed as the worst coal crisis it has witnessed in years.
Instead, all of Coal India’s coal stocks will be supplied to power plants to make up for the power deficit due to the lack of adequate fuel supply. “It is a temporary prioritisation of supplies to power plants till stabilisation in stocks is restored,” a source acquainted with the plan affirmed in a statement to Reuters.
Coal India supplies coal to 130 out of 135 coal-powered thermal power stations in the country. Endeavouring to battle the coal shortage faced by power plants, Coal India’s supplies to power stations have already hit 1.62 million tonnes a day this week, with total offtake growing to 1.88 million tonnes per day, as compared to the month’s average of 1.75 million tonnes.
However, the company believes that the demand for coal is only expected to increase further as workers return to power plants after Dussehra.
The shortage of coal and the emerging power deficit in the country has been the outcome of the closure of some mines and inundation of a few others due to monsoon, Coal Minister Pralhad Joshi stated earlier today during his visit to the Ashoka mine of the Central Coalfields Ltd (CCL) at Piparwar in Chatra district of Jharkhand.
He, nevertheless, asserted that the supply situation is improving and all the thermal power plants will continue to receive adequate coal supply to generate electricity.