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 Urban

India To Invest $37 Billion To Boost Petrochemical Capacity

India is set to become a major global player in the petrochemicals industry, driven by a planned capital expenditure of $37 billion (Rs 3.1 trillion) aimed at reducing import dependency and enhancing self-sufficiency, according to S&P Global Ratings.In its latest report titled “First China, Now India: Self-Sufficiency Goals Will Add To Petrochemicals Supply”, S&P said India’s large-scale capacity expansion—mirroring China’s earlier push—will likely intensify oversupply pressures in Asia’s petrochemical markets.Currently the world’s third-largest petrochemical consumer a..

Next Story
Infrastructure Transport

Indian Railways Expands Global Exports Of Rail Equipment

Indian Railways has announced that it is rapidly emerging as a global exporter of railway equipment, including bogies, coaches, locomotives, and propulsion systems, under the government’s ‘Make in India, Make for the World’ initiative.According to an official statement, India’s railway products are now reaching over 16 international markets, reflecting the country’s growing capacity to design, develop, and deliver world-class rail solutions.Metro coaches have been exported to Australia and Canada; bogies to the United Kingdom, Saudi Arabia, France, and Australia; propulsion systems t..

Next Story
Infrastructure Transport

RailTel Awards Rs 163 Million Contract To RTNS Technology

RailTel Corporation of India Limited (RailTel), a Mini Ratna Public Sector Undertaking, has awarded a domestic work order worth Rs 163 million to RTNS Technology Private Limited.The contract, issued on 30 September 2025, involves the supply and installation of equipment and related services for one of RailTel’s key customers. The project underscores RailTel’s commitment to advancing technology and communication infrastructure through collaboration with domestic system integrators.RTNS Technology Private Limited, an ISO-certified system integrator, provides comprehensive solutions for perim..

Advertisement

Subscribe to Our Newsletter

Get daily newsletters around different themes from Construction world.

STAY CONNECTED

Advertisement

Advertisement

Advertisement

Talk to us?