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Coal dispatch to power plants increased by over 27 per cent
COAL & MINING

Coal dispatch to power plants increased by over 27 per cent

Despite the price hike in import prices, the dispatch of coal to the power sector has increased by 27.13 per cent to 59.73 million tonne (mt) in October. Many of India's thermal power plants were f...

Despite the price hike in import prices, the dispatch of coal to the power sector has increased by 27.13 per cent to 59.73 million tonne (mt) in October. Many of India's thermal power plants were facing a crisis owing to low stocks of coal. 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 per cent to 0.46 mt in October, compared to 0.65 mt last year during the same period. Fuel dispatch to the cement sector has also decreased to 0.47 mt in October, compared to 0.68 mt last year. In other sectors, including steel and cement, coal supply has dropped to 4.19 mt in October, compared to 6.71 mt last year. Pralhad Joshi, Union minister for Coal, Mines and Parliamentary Affairs had asked Coal India (CIL) and its subsidiaries to ensure coal stocks for up to 18 days with thermal power plants by the end of this month. CIL accounts for about 80 per cent of domestic coal output in the country. It has been prioritising coal supply to power producers to refill coal stocks. Joshi asked the chairmen and managing directors of coal PSUs to revise the coal strategy to achieve the goal. He also shared that international coal prices have tripled over recent times, resulting in a 38 per cent reduction in coal imports in India. He added that electricity demand has also increased by 24 per cent. Joshi recently visited the coal mines in Jharkhand and Chhattisgarh and expressed his concern about the coal crisis and its impact on power supply. To address the crisis, Coal India is prioritising the increase of coal supply to power plants.

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