Indian ministry says it has ample coal stocks to lit power plants

Highlights

  • Indian coal ministry stated that it has ample coal stocks in its reserves to fulfill the demand for the power sector.
  • The shortage of coal has created a supply crunch of fuel in various eastern and northern states of the country.
  • The country has mandated the use of biomass pellets in various coal-fired thermal power plants to cut air pollution.

The Indian Coal Ministry said on Sunday that it has ample coal stocks in its reserves to fulfill the demand for the power sector. The statement of the ministry came in line with the Delhi Chief Minister who stated a day earlier that the Indian capital may face a power crisis due to fuel shortage. Coal India Limited, an Indian government-owned coal mining, and refining corporation is using its 40Mt stocks to replenish utilities that have an inventory of 7.2Mt, enough to four days requirements.

The shortage of coal has created a supply crunch of fuel in various eastern and northern states of the country, with residents in the region expecting power cuts reaching 14 hours per day.

Higher coal prices coupled with monsoon rains have affected the coal supplies to the power plants.

Coal Supplies

The power ministry has stated that the coal supplies to the power utilities rose 1.92Mt on Saturday, while the overall consumption was 1.87Mt. Additionally, the ministry has also stated that Coal India is ramping supply of coal to increase coal reserves of power companies.

Coal demand and supply

Source: © Pricelessphotos | Megapixl.com

The country has less than three days of coal stocks in more than 135 coal-fired power plants, that are intended to supply 70% of the country's electricity.

Additionally, the country has mandated the use of biomass pellets in various coal-fired thermal power plants to cut air pollution as the agricultural waste is otherwise burnt by farmers to generate electricity.

Farmers in various northern states of the country burn vast swathes of paddy stalks, preparing land for plantation. The process creates a severe spike in the level of air pollution in the country.

The governmental policy related to the utilisation of biomass is expected to come into force by October 2022.

Bottom Line

India along with various other nations of the world isis facing a a coal supply crunch amid skyrocketing prices of coal in China. However, India's coal ministry had stated that it has ample coal stocks in its reserves.

Comment


Disclaimer