Following concerns over blackouts in several states, the government said on Saturday that the coal supply situation for power plants is likely to get better soon. Delhi has said the city may see power cuts in two days if adequate coal is not sent to power plants. Punjab has also reported long power cuts. 

The Power Ministry said in a statement that shortage in coal supply is connected with the rise in prices of imported coal, among other factors.

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“There are four reasons for depletion of coal stocks at power plants Shortage of coal at power plants is most likely credited to unprecedented increase in demand of electricity due to revival of economy, heavy rains in coal mine areas, increase in price of imported coal and legacy issues such as heavy dues of coal companies in certain states like Maharashtra, Rajasthan, Tamil Nadu, Uttar Pradesh, Rajasthan and Madhya Pradesh,” the Power Ministry said in a statement today.

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“An inter-ministerial sub-group led by the Coal Ministry has been monitoring the coal stock situation twice a week,” the government said. The ministry and Coal India Ltd have claimed to do their best to increase dispatch to the power sector to 1.6 million tonnes or MT per day in the next three days and consequently reach 1.7 MT per day.

“It is likely to help in gradual build-up of coal stocks at power plants in the near future, and coal supply is likely to improve,” the Power Ministry said.

Electricity is consumed daily beyond 4 billion units per day, out of which, 65-70% demand is being met by coal-fired power plants solely. 

Rising coal prices and import substitution have resulted in decrease in import of coal in 2021 as compared to 2019-20, which is compensated by domestic coal for power generation. Thus, leading to an increase in the demand for domestic coal.