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LATEST NEWS UPDATES | India’s Coal Crisis -CP Chandrasekhar

India’s Coal Crisis -CP Chandrasekhar

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published Published on Nov 5, 2021   modified Modified on Nov 7, 2021

-NetworkIdeas.org

In recent weeks the media have featured stories bordering on the alarmist about a coal shortage in India. Coal inventories with thermal power plants had fallen to levels at which major country-wide power outages seemed inevitable. Fortunately, that has not (as yet) materialized, but it is indeed true that coal inventories with the power producers did collapse from the equivalent of around 30 days requirement to that for a couple of days or more in the case of many plants. According to data from the 135 plants with over 165 GW of installed generation capacity monitored by the Central Electricity Authority (CEA), 70 were down to less than four days of fuel on October 10, 2021, compared to 64 a week earlier. Which raises a question: why should this situation arise in a country with the fifth-largest coal reserves in the world and long years of experience in mining coal?

Explanations provided by different sources have included sharp increases in demand for power, and therefore coal, as the economy revives from the Covid shock, and unseasonal rains that have affected mining and transportation. But these fail to convince. Neither is the recovery robust nor is demand likely to exceed pre-Covid levels which the existing supply system had been consistently servicing. And India’s coal industry is acclimatized enough to the vagaries of the monsoon to keep production going when confronted by changes in the intensity and timing of rainfall. Focusing on such explanations perhaps serves only one purpose: that of running down Coal India Ltd (CIL), the public sector behemoth, that since the nationalization of coal mines in 1973 has almost single-handedly shouldered the burden of meeting India’s rising coal demands. The state-owned leviathan is constantly attacked fpr being inefficient and unequal to the task of sustaining coal supply.

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NetworkIdeas.org, 5 November, 2021, https://www.networkideas.org/news-analysis/2021/11/indias-coal-crisis/?fbclid=IwAR2UZsDgFQAam00KsX5IH4CswLQB7HhhZgFoSLr1Hjzq8Xtcv3bm89Zpuj8


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