Sumary of Coal India warned government of coal shortage in February, documents show:
- India, which has the world’s fourth largest coal reserves, is facing a shortage of the fuel and has urged utilities to import coal as supplies at several plants run low.
- State-run Coal India told the Central Electricity Authority (CEA) that it was “evident that a crisis is arising” unless immediate action was taken to increase supply to power plants, according to a Feb.
- Article content Coal India, the world’s largest coal miner, generally asks utilities to stock up before the annual monsoon season when rains squeeze output and make transport more difficult.
- But the company was more worried this year as coal-fired power output picked up with coronavirus-related restrictions easing, while utilities tapped stockpiles instead of buying fresh supplies, a senior Coal India official told Reuters.
- “Coal India has been requesting power houses to increase the stocks at its power plants to prevent any crisis in the future resulting from shortage of coal,” a senior Coal India executive wrote to the CEA’s fuel management director.
- Seven months after the letter was written, average coal stock held by Indian coal-fired plants declined to a near three-year low of six days in September, compared with an April 2020 high of 31 days, CEA data showed.