Coal dispatch to power plants increased by over 27% in October

10 Nov 2021 CW Team

Despite the price hike in import prices, the coal dispatch to the power sector has increased by 27.13% to 59.73 million tonnes (mt) in October.

Many of India's thermal power plants were facing a crisis due to low stocks of coal at their end.

According to official data, last year in October, coal supply to the power sector was 46.98 mt.

Coal supply to the sponge iron sector decreased by 29.2% to 0.46 mt in October, compared to 0.65 mt last year during the same period.

The fuel dispatch to the cement sector has also decreased to 0.47 mt in October, compared to 0.68 mt last year during the same period.

In other sectors, including steel and cement, coal supply has dropped to 4.19 mt in October, compared to 6.71 mt last year.

Coal Minister Pralhad Joshi, had asked Coal India Limited (CIL) and its subsidiaries to ensure coal stocks for up to 18 days with the thermal power plants by the end of this month.

CIL accounts for about 80% of domestic coal output in the country. It has been prioritising coal supply to power producers to refill coal stocks.

He asked the Chairman and Managing Directors of coal Public Sector Undertakings (PSUs) to revise the coal strategy to achieve the goal.

He said that international coal prices have tripled over recent times and resulted in a 38% reduction in coal imports in India. He added that the electricity demand has also increased by 24%.

Joshi recently visited the coal mines in Jharkhand and Chattisgarh and was concerned about the coal crisis in the country and its impact on the power supply. Image Source

Also read: Coal India Limited prioritises coal supply for power plants

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