Surveys have reported India to have a wide coal shortage in the third quarter of the year due to the radical increase in electricity demands.
Owing to such power shortages, the state-run Coal India plans to import fuel for the 1st time since 2015. The company will import coal for the government utilities and private sectors. The countrywide coal shortage has raised concern among the authorities. This would enable stocking up coal in the inventories since the 13% decline of coal production in April when the world witnessed the worst power shortages in the country.
It was informed to all coal utilities and the Coal Union that India would be importing coal on a G2G basis and supply then to power plants.
The decision was taken by the Power Ministry
The ministry said importing coal was taken when various states said individual coal imports would lead to a commotion. Thus the country is set to import coal under a centralized company Coal India.
The country has increased pressures on the utilities to integrate into the local coals and warned the utilities to cut off the decreased supply of domestically mined coals if they do not import coal to fill their inventories.
What is to come?
It is plausible for India to witness more power outrage in the coming months with the increasing demands for coal and the power expected. The two sectors are interrelated.
As per the reports, the coal supply will fall to 154.7 million tonnes, whereas the ideal amount required is 197.3 million tonnes. These high power demands were mainly due to heatwaves in India and the temperature making most tasks unbearable. Though there is a slight reduction in electricity demand due to the rain spell, studies report the return of heatwaves in full swing, and the markets are to rise soon again.
