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    India is unlikely to face a power crisis situation like China

    China is still suffering from power shortages, but a similar crisis is imminent in India. In India, 70% of electricity is generated via coal-fired power plants. The current reasons are the shortage of domestic coal, soaring import coal prices, and increasing demand for electricity due to strong economic growth.

    October is usually a monsoon-influenced mining production trough in India. However, this year, imports have plummeted due to high prices in the international market, as well as a surge in demand due to post-monsoon supply shortages and increased economic activity. Inventory accumulation from April to June 2021 was also inadequate compared to the years prior to COVID.

    Coal inventories are at stake, with media reports that most power plants in the country have 0 to 3 days of stockpiles left.

    China is still suffering from power shortages, but a similar crisis is imminent in India. In India, 70% of electricity is generated via coal-fired power plants. The current reasons are the shortage of domestic coal, soaring import coal prices, and increasing demand for electricity due to strong economic growth.

    Meanwhile, Coal India Limited (CIL), a coal mining and refining company owned by the Government of India and the world’s largest coal producer, guarantees expansion of production to meet current demand. However, it can only be done in a short period of time by importing coal, which has now risen from about $ 70 / ton in November 2020 to $ 240 / ton.

    Coal India produces over 600 million tonnes of coal, all of which is consumed domestically. In addition, another 300-400 million tonnes are imported from countries such as Australia, South Africa and Indonesia to meet domestic needs. Coal India hasn’t raised prices since 2018, but international market coal prices have risen this year, which has led to lower imports.

    Last week, CIL could have avoided the current low coal inventory of thermal power plants if they maintained their inventory for 22 days, as mandated by the Central Power Agency (CEA). I made a statement that there is. “Coal inventories were at a comfortable level of 28.4 MT at the beginning of the fiscal year, and at the end of July, utility coal inventories were 24 MT, comparable to the average for the last five years over the same period. It was in August that the number decreased. “

    To monitor the supply of coal to thermal power plants, the Government of India has formed an inter-ministerial team of representatives from the provinces of Electricity and Rail, CIL, CEA, and Power System Operation Corporation Limited.

    Currently, it is unlikely that India’s electricity situation will worsen as it does in China. However, according to Ministry of Power officials, temporary outages may occur in some areas in the coming days.

    Fiber2Fashion News Desk (RKS)

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    India is unlikely to face a power crisis situation like China

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    The post India is unlikely to face a power crisis situation like China appeared first on Eminetra.

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