Coal Supply Shortage at Indian Power Plants Ring Emergency Alarm

India's fuel stock at its 89 thermal power stations has fallen by 35 per cent from a year ago, the latest data from the Central Electricity Authority reveal.

Delays in the commissioning of new mines as well as a production decline from operating mines caused the fall, prompting India's power sector to sound the emergency alarm.

"The main reasons for the decreased availability of coal recently are logistical problems of railway rakes and the hit to production from strike at Coal India Ltd and heavy rains," a senior coal ministry official told business-standard.com.

The official said the ministry had taken several steps, including termination of captive blocks and discussing the rake availability issue with the railways.

The 89 thermal power stations run on an 8.3-million tonne (mt) coal stock, compared with the 12.7 mt a year ago. Of these, 26 power stations hold stocks that can support operations for four days, while half of the 89 stations hold stocks sufficient for seven days of operations.

Over the past 18 years, India has awarded 193 captive coal blocks, largely to private sector companies. Only 28, however, started operations, causing production targets to go haywire. These blocks were expected to produce 104 mt coal annually by the end of this plan period.

But production last year stood at a dismal 34 mt, prompting the ministry to cancel allocations of a dozen blocks, including five blocks of state-run NTPC Ltd.

"We are also trying to ensure that CIL's Mozambique block starts producing beginning next year. The ministry is also scouting for assets in Australia and Indonesia. Also, new technologies for ramping up underground production are being sought from Australia," the coal ministry official said.

State-owned CIL has established an African arm, Coal India Africana, to start production from two exploratory blocks it owns in Mozambique.