MANAGERIAL ECONOMICS

PRESENTATION
BY-
SANDHYA K
PES12202202720
Coal crisis in India and its Impact on
Electricity.
 Coal in INDIA
 Coal in India has been mined since 1774
  India is the second largest producer and consumer of coal after China, mining
777.31 million metric tons (856.84 million short tons) in FY 2022.
 Around 30% of coal is imported.
  Dhanbad, the largest coal-producing city, has been called the coal capital of
India.
 Most of the coal is burned to generate electricity and most electricity is
generated by coal.
 Coal Shortage in India

 The electricity supply in the country fell short of demand due to a shortage of coal,
which fuels 70% of India’s power demand.
  In over 50 thermal plants, the coal stock has depleted below the 10% mark. (CIL)
 Central Electricity Authority (CEA) data of April 19, 2022, India’s electricity production
via thermal plants using domestic coal stood at 182.39 GW with an average of 34% coal
stock in them.
 Of the 173 thermal power plants, 85 plants fired by domestic coal have less than 25%
stock while 11 plants running on imported coal have hit critical levels.
 SHORTAGE OF COAL
 India ramped up coal production by 27.2% in April.
 The peak in demand has been met with load shedding and
planned outages by states :
JHARKHAND - 10-12%
ANDHRA PRADESH – 10%
UTTARAKHAND - 8-10%
MADHYA PRADESH – 6%
HARYANA – 4%
 Why is India facing Coal shortage?

 Import-based coal
 Thermal plants
 Increasing power demand
over the years
 Heavy rainfall/Monsoon
season
 Effect on power supply and cost

The daily electricity deficit in India has increased from 0.3%

to 1% in April 2022. This power deficit has led to an 85%
increase in the price of electricity traded on Indian exchanges
from an average of Rs 3/kWh to Rs 8.23/kWh in March. To
regulate prices, CEA has capped short-term power exchange
rates to Rs 12/kWh.
What is govt doing to mitigate the shortage??

 Government-owned CIL said that it had increased the coal supplies to thermal
power stations by 14.2% during the first half of April 2022, compared to the
same period last year.
  It has raised coal production to 26.4 million tonnes during the first half of
April, achieving 27% year-on-year growth.
 The government has also halted hundreds of passenger trains to many priority
routes for coal wagons to reach power plants on an urgent basis.
Centre-plans

 Importing coal
 Use captive coal reserves up
to 25% to meet domestic
demand
 Ithas permitted power-
generating companies to blend
imported coal up to 10% to
ease the burden on CIL.
THANK YOU