Kumari Palany & Co

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Prospects of power-cut again next month!! Coal stock very low!!!

Posted on: 30/May/2022 12:47:35 PM
An analytical review warns that as the stock of coal on hand before the onset of monsoon is very less, there are prospects for power-cut to be imposed throughout the country during coming July- August!

Even at the onset of the summer season, there was an acute shortage of power. It was explained that the shortage of coal for the 173 thermal power stations throughout the country

The citizens, especially in the state of Rajasthan faced severe hardships because of the long power cuts! The industries were constrained to shut down as there was no electric power. Subsequently, the central government arranged for coal transport through trains to overcome this acute shortage of coal and managed to a certain extent!

In this situation, CREA (Centre for Research On Energy And Clean Air) has warned that this power shortage is likely to be encountered in another month!!

CREA, a self-initiative Agency, has mentioned in an analytical report:

“As per the details gathered from the central government`s available data, the central government is under a severe constraint to initiate action on the acute coal shortage of the thermal power stations in the country!!

As such, there is a dire need to ensure smooth and sufficient distribution of coal well beforehand! The Central Electricity Authority (CEA) has estimated that the country’s maximum power demand in August would be 214 Gigawatts!

Further, the average power requirement in May was 133426 million units. This demand might increase in future!

In this situation, with the onset of the southwest monsoon rainy season, it might be extremely difficult to excavate coal from the coal mines and transport the same to the thermal power stations!

So, in case sufficient stock of coal is not kept on hand before the onset of the southwest monsoon rainy season, the country may again enter a ‘power shortage; the situation in July-August!”

Sunil Dahiya of CREA shared in this regard:

“The country’s maximum coal mine capacity is 1500 Metric Tonnes. During the year 2021-22, the total coal production was 777.26 Metric Tonnes. This is only half of the capacity of the COAL MINES.

So, in case of a coal shortage, the coal mines can increase their production!”

The State Governments are not allowed to procure coal from outside sources other than Coal India!

Last April, there was an acute shortage of coal in several thermal power stations in various states forcing the introduction of power cuts!  To overcome the coal shortage, the State Governments had sought permission to procure coal from other countries!

As it was expected that this measure might cause great confusion, the central government arranged for Coal India to procure coal importing from foreign countries.

After the year2015, after a gap of 7 years, Coal India is resuming the import of coal! As such, the Central Ministry for Electrical Power/Energy has asked that the appeals made by the various state governments to import coal from abroad!

It is worth noting at this juncture that Coal India contributes 80% of the total coal production in the country!

Shortage of coal encountered right from 2020!

In the report released by CREA (Centre for Research on Energy and Clean Air)it is mentioned:

“The present shortage of coal commenced only recently! The coal stock was reducing gradually in various thermal power stations right from 2020!

The main reason for the power shortage and power cuts was the fact that the thermal power stations had not planned and acted earlier to prevent coal shortage before the onset of the southwest monsoon rainy season!

As the coal mines tend to get flooded during the southwest monsoon rainy season, the production of coal and transporting the same gets affected severely!”

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