COAL SHORTAGE

CAN IT LEAD TO
POTENTIAL ENERGY
CRISIS IN INDIA
 BRIEF
India has the fourth largest coal reserves in the world. it heavily relies on
thermal power plants to meet the energy demands

The country is also the world’s second-largest importer of coal and imports fuel
from other countries

India depends on coal to meet over 70 percent of its power needs,and state run
coal india limited supplies over 80 percent of the total coal required.
 SOME INSIGHTS ON COAL
SHORTAGE
I. Experts say coal based power plants in India have witnessed
rapid depletion of coal stocks from 28 days at end of march
to just four days by end of September this year
II. The data provided by central electricity authority during
crisis showed over half of the country’s 135 coal fired power
plants have a fuel stock of fewer than two days, but the
ministry of finance stated, that there is no such shortage of
anything and statement by power minister every power
producing installation has the next four days stock absolutely
available within their own premises and supply chain is
intact
REASONS FOR CRISIS AND IMPACT
1. Heavy rains in coal producing states and flooding in coal mining areas lead to
sharp decline in supply of coal
2. Transport issues and labor disruptions in major coal mining countries added to
the woes and sudden rise in power demand as economy revives from pandemic
widened the gap between supply and demand
3. Persistent non payment of coal sale dues by power plants to coal companies has
also created serious strain on their working capital position.
4. Some companies were forced to borrow from banks to meet operational expenses.
AFTER THE PANDEMIC….
As the economy began to recover from Covid 19 pandemic lockdown, a sudden
surge demand in coal production, transportation and supply was witnessed ,which in
turn pushed the coal prices higher at international level

The prices of imported coal began to soar in India and power plants that usually
relied on imports became dependent on domestic coal supply.

At same time, inclement weather also contributed to coal shortage as mines were
flooded hampering the supply of fuel to power generation units.
INDIA’S ENERGY CONSUMPTION AND
PICTORIAL REPRESENTATION OF COAL
SHORTAGE
Reports said that India’s electricity consumption
also has risen almost about 17 percent in the last
two months from a year earlier

Delhi,Punjab,Rajasthan,Uttar Pradesh,
Bihar,Jharkhand,Kerala,Tamil Nadu and
AndhraPradesh are the main contributors in the
rise of demand
IMPACT
ACCORDING TO REPORT,18000 CRORE IS CURRENTLY DUE TO COAL
PRODUCERS ACCORDING TO MR. PARTHA BHATTACHARYYA
BHATTACHARYYA SAID THE PERSISTENT SHORTAGE OF COAL
PRODUCTION BY PRIVATIZED AND CAPTIVE MINES FORCED INDIA TO
IMPORT AROUND 200 MILLION TONS OF COAL
OF THIS MORE THAN 40% GOES TO MEET THE DEMANDS OF POWER
PLANTS.
A SPURT IN IMPORTED COAL PRICES,MAINLY DUE TO A MAJOR
INCREASE IN COAL IMPORTS BY CHINA,ACTED AS A BREAK ON IMPORT
OF COAL
COAL INDIA LIMITED(CIL)
HALTS COAL SUPPLIES
CIL RECENTLY ANNOUNCED THAT IT HAS TEMPORARILY STOPPED
COAL SUPPLIES TO ITS CUSTOMERS FROM NON POWER
SECTOR.HOWEVER THE COMPANY ASSURED THAT THIS IS ONLY A
TEMPORARILY MOVE TILL THE SITUATION STABILIZES
THE COMPANY SAID IT HAS STOPPED ALL ONLINE AUCTIONS OF COAL
EXCEPT THOSE MEANT FOR POWER SECTOR
THIS IS ONLY A TEMPORARILY PRIVITISATION,IN THE INTEREST OF
NATION,TO TIDE OVER THE LOW COAL STOCK SITUATION AT THE
STRESSED POWER PLANTS.
PRESENTED BY
ABHISHEK PRAKASH(29/003)
MRADUL AGARWAL(29/030)
RAHUL SINDHU(29/035)
SARTHAK GUPTA(29/042)
SIDDHARTH SINGH(29/046)