This interim measure comes against the backdrop of India recording a record high power demand of 207.111 gigawatts (GW) on Friday and a peak power shortage of 5.4%, or 10,778 megawatts (MW). India faced an energy shortage of 4% or 192 million units (MU) on Friday.
India’s power plants burn around 1.85–1.87 million tonnes (mt) of coal every day to generate electricity. The country’s largest coal producer, state-run Coal India Ltd (CIL), has a fuel stock of 56.7 mt, coal stocks at Singareni Collieries Co. Ltd and captive coal blocks are 4.3 mt and 2.3 mt, respectively. In addition, another 2 mt is available at CIL sidings. To tide over the precarious situation, CIL has offered 5.75 mt of coal to state and central government-owned power generation plants.
However, what is worrying policy planners is a larger electricity crisis that is brewing with state-owned electricity distribution companies (discoms) unable to stock coal in preparation for the monsoon, when fuel offtake from mines comes to a standstill. The fallout of the inability to stock coal in the run-up to monsoon may result in a bigger crisis in September and October.
According to the Union power ministry, discoms owe ₹1.05 trillion to power generation companies and another ₹4,459 crore in transmission dues.
“There is enough coal in the system both at Coal India Ltd’s level and in the power system. The runaway pace of electricity generation growth is around 11%, which is the highest in the last 38 years," said a senior government official requesting anonymity.
The peak power demand is expected to rise by 8% in May, according to the power ministry. A total of 108 coal-based power stations have less than seven days of coal stock. Of these, 88 are fuelled by domestic coal supplies and 12 run on imported coal.This assumes significance given that coal-fuelled power projects totalling 204 GW remain the mainstay of India’s power generation and account for more than half of India’s power generation capacity.
“The electricity demand is likely to remain elevated considering the heatwave, which along with the supply-side constraints on coal are likely to keep the spot power tariffs high and lead to an energy deficit in a few states. Nonetheless, the pick-up in the wind and hydro generation from May is likely to provide some relief for the sector. Thereafter, the arrival of monsoon should cool off the demand," said Icra’s vice-president and sector head Vikram V.
The impact of this demand-supply mismatch has meant that several states are struggling to meet huge growth in power demand amid low production at power plants. The rise in the price of imported coal amid the Ukraine-Russia conflict has also meant that even imported coal-based power plants and those looking to blend this coal have not been able to do so in requisite volumes.
The Union government has maintained that there have been no lacunae on the part of the Centre, but states are of the view that the present crisis is largely on account of erratic coal supplies.
“Prime Minister Narendra Modi’s government is continuously taking steps to increase coal production in the country. In the financial year 2013-14, the country’s coal production was 566 mt, While in the fiscal year 2021 22, The country’s coal production increased to 777 mt and offtake to 818 mt. That means during the time of Modi government, the country’s coal production has increased by 37% and offtake by 43 %," said Pralhad Joshi, Union minister of parliamentary affairs, coal and mines in a Facebook post responding to criticism on coal situation in the country from the Opposition.
CIL has increased fossil fuel production by 27.2% in April from a year earlier, with coal dispatch also up by 5.8%, the Union government said. CIL’s supplies have been raised to 1.64 mt per day during this period compared with 1.43 mt in the corresponding period last year.
“However, the escalating power demand, driven by the post-pandemic economic buoyancy and hotter-than-normal summer, seem to dwarf the upsurge in supplies," CIL earlier said. “The mercury levels soared above 41 degrees centigrade in Delhi, Punjab, Haryana, Uttar Pradesh, and Rajasthan. The ministry of earth sciences has categorized heatwave status in these northern states.
subhash.narayan@livemint.com
