Coal India exceeds its coal supply commitment to electricity plants

16 May 2022 CW Team

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%

Resources

04 Jun 2026

ULCCS Showcases Cooperative Model at UN Symposium

Uralungal Labour Contract Co-operative Society (ULCCS) showcased its community-led development model at the United Nations Headquarters in New York, where it participated as a panellist at the International Symposium on Cooperative Financial Institutions held on 28–29 May 2026.Jointly organised by the United Nations Department of Economic and Social Affairs (UN DESA), the International Cooperative Banking Association (ICBA), and the International Cooperative Alliance (ICA), the symposium was held under the theme ‘Fuelling Inclusive and Equitable Growth’ and brought together policymakers,..

Infrastructure Transport

04 Jun 2026

Delhi Airport to Finalise 20-Year Master Plan

Delhi International Airport Ltd (DIAL) is finalising a 20-year master plan to guide long term infrastructure and operational development at Indira Gandhi International Airport, an official said. The operator expects the plan to reflect changes in the airline industry, shifts in the competitive landscape and evolving infrastructure requirements across terminals, airside and support services. The official said the document is likely to be ready in the next two to two-and-a-half months as the operator moves through planning stages. The plan will be prepared after consultations with airport users ..

Real Estate

04 Jun 2026

Aadhar Housing Finance Targets Rs 500 bn AUM By FY29

Aadhar Housing Finance has set a target to raise its asset under management to Rs 500 billion (bn) by the end of FY29, aiming to achieve this over the next three financial years through an 18-20 per cent loan growth trajectory. The firm focuses on the low-income segment with a ticket size of less than Rs 1.5 million (mn) and has relied on that segment to drive expansion. The company closed FY26 with an AUM of Rs 305.71 bn, reflecting the expansion in recent years, and it reported a net profit rise of 22 per cent to Rs 11.08 bn. Management indicated that gross non-performing assets stood at 1.0..