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

Metro Line 2B Phase 1 to Boost Realty in Mumbai’s Eastern Suburbs

Mumbai’s real estate sector is set for a major boost as Phase 1 of Metro Line 2B, between Mandale and Diamond Garden, nears completion. The Mumbai Metropolitan Region Development Authority (MMRDA) has confirmed that mandatory rectifications are done, and inspections by the Commissioner of Metro Railway Safety (CMRS) have been carried out. The 5.39-km stretch with five stations forms part of the larger DN Nagar–Mandale corridor, designed to ease congestion and improve east–west connectivity. Passenger operations are expected by December 2025, with the full line slated for 2027. ..

Next Story
Resources

WattPower wins Best Inverter award at Global Solar Expo 2025

WattPower, a leading renewable energy solutions provider, has won the award for “Best Inverter in the Utility Segment” at the Global Solar Expo 2025. The recognition underscores the company’s commitment to delivering reliable, high-performance and future-ready solar solutions for large-scale projects. At the forefront of utility-scale solar, WattPower manufactures advanced string inverters that directly feed power into the Indian grid. With robust technology, high-quality components and comprehensive product lifecycle support, its solutions stand among the most sophisticated in the ..

Next Story
Real Estate

Awfis delivers 67,000 sq. ft. innovation hub for eBay in Bengaluru

Awfis Space Solutions, India’s largest flexible workspace provider and the first publicly listed workspace solutions platform, has partnered with eBay to establish a 67,000 sq. ft. innovation hub at Embassy Tech Village, Bengaluru. The mandate covers design, build and management of the new office, which will act as a strategic hub supporting diverse functions and accelerating eBay’s AI-first commerce strategy. The centre will focus on artificial intelligence, engineering, product development and applied research, strengthening eBay’s growth in India. Embassy Tech Village, North Beng..

Advertisement

Subscribe to Our Newsletter

Get daily newsletters around different themes from Construction world.

STAY CONNECTED

Advertisement

Advertisement

Advertisement

Talk to us?