Coal India exceeds its coal supply commitment to electricity plants
COAL & MINING

Coal India exceeds its coal supply commitment to electricity plants

Coal India Limited (CIL), in a bid to minimise the shortage of dry fuel for thermal electricity generating plants, is supplying more coal than its commitment to them, pushing the non-power sector to brace for more challenging days.

On Thursday, a company told the media that as several states have been facing an unusual power outage, Coal India is forcing more fuel to power plants than its commitment of 1.65 million tonnes per day.

As of May 10, a total of 85 thermal power plants dependent on domestic coal have critical stock, while 11 such factories dependent on imported coal have a critical stock level. A total of eight power plants are not in function.

On average, CIL delivered 1.66 million tonnes of coal per day to power utilities in April, which rose to 1.73 million tonnes during the last week of the last month.

In this condition, the supply to non-power industries such as textiles, fertiliser, and aluminium gets affected.

Indian Coal Merchants' Association president V K Arora told the media that now, non-power industries are not getting coal despite making payments in e-auctions.

He said supply to non-power industries would be no more than 30% of the demand.

Moreover, the majority of the coal is presented by road, which in many circumstances is not feasible for offtake, Arora said.

Coal supply to non-power industries would be about 2.2 lakh tonnes per day to 2.5 lakh tonnes per day against an average of 3.5 lakh tonnes per day in February. The demand is evaluated to be 5 lakh tonnes per day.

Eastern Coalfields and Bharat Coking Coal merged were offering 9-10 rakes per day to non-power industries, but that too has been decreased to half in the last few days, Arora said.

As the country struggles with more increased demand for power during the summer, sharp spikes in imported fuel costs and freight rates are compounding the issue.

The Indian railways have cancelled several trains to prioritise coal rake movement across the nation to deal with the lack of the necessary input at thermal power plants.

Image Source

Also read: Govt allows coal mines to increase output by 40%

Coal India Limited (CIL), in a bid to minimise the shortage of dry fuel for thermal electricity generating plants, is supplying more coal than its commitment to them, pushing the non-power sector to brace for more challenging days. On Thursday, a company told the media that as several states have been facing an unusual power outage, Coal India is forcing more fuel to power plants than its commitment of 1.65 million tonnes per day. As of May 10, a total of 85 thermal power plants dependent on domestic coal have critical stock, while 11 such factories dependent on imported coal have a critical stock level. A total of eight power plants are not in function. On average, CIL delivered 1.66 million tonnes of coal per day to power utilities in April, which rose to 1.73 million tonnes during the last week of the last month. In this condition, the supply to non-power industries such as textiles, fertiliser, and aluminium gets affected. Indian Coal Merchants' Association president V K Arora told the media that now, non-power industries are not getting coal despite making payments in e-auctions. He said supply to non-power industries would be no more than 30% of the demand. Moreover, the majority of the coal is presented by road, which in many circumstances is not feasible for offtake, Arora said. Coal supply to non-power industries would be about 2.2 lakh tonnes per day to 2.5 lakh tonnes per day against an average of 3.5 lakh tonnes per day in February. The demand is evaluated to be 5 lakh tonnes per day. Eastern Coalfields and Bharat Coking Coal merged were offering 9-10 rakes per day to non-power industries, but that too has been decreased to half in the last few days, Arora said. As the country struggles with more increased demand for power during the summer, sharp spikes in imported fuel costs and freight rates are compounding the issue. The Indian railways have cancelled several trains to prioritise coal rake movement across the nation to deal with the lack of the necessary input at thermal power plants. Image Source Also read: Govt allows coal mines to increase output by 40%

Next Story
Infrastructure Transport

India’s Maha Kumbh of Road Construction

The RAHSTA Forum 2025, held on June 25 at Courtyard by Marriott, Mumbai, delivered powerful insights and dialogue on the future of India’s roads and highways sector. Organised by the FIRST Construction Council, the Forum served as the curtain-raiser to the much-anticipated RAHSTA Expo 2025, set to take place on 3rd and 4th September at the Jio Convention Centre, Mumbai.Union Minister of Roads Transport & Highways Shri Nitin Gadkari, while appreciating the efforts of FIRST Construction Council and ASAPP Info Global Group, commended the awards which recognise excellence across various..

Next Story
Real Estate

Built to Last, Designed to Impress

The construction and interior design industries stand at the confluence of functionality and aesthetics, where innovation powers the creation of enduring structures and inspiring spaces. At the heart of this process are materials and solutions that enable architects, designers, and builders to realise their visions with precision and reliability.Featuring iconic brands such as Fevicol—synonymous with adhesive solutions—Dr. Fixit, a complete waterproofing system renowned for addressing every critical area of construction, and Roff, a specialist in tile-fixing solutions, Pidilite has earned ..

Next Story
Infrastructure Energy

New Push to Cut India’s Air Pollution through Power Sector Reforms

In a significant stride toward environmental sustainability, Cummins India introduced CPCB IV+ compliant gensets to India on July 5, 2023, marking a paradigm shift in the power generation industry. These generators are engineered to adhere to the progressive emission norms set by the Ministry of Environment, Forest, and Climate Change. Being the first sets in the field, they have garnered praise for their remarkable achievements in emissions reduction and cutting-edge technology. Powerica, with its four-decade-long partnership with Cummins India Limited, is dedicated to consistently deliver th..

Advertisement

Advertisement

Subscribe to Our Newsletter

Get daily newsletters around different themes from Construction world.

STAY CONNECTED

Advertisement

Advertisement

Advertisement

Advertisement

Talk to us?