No threat of disruption in power supply, assures Pralhad Joshi as states schedule outages

Rejecting reports claiming that India could be staring at a power crisis and acute shortage of coals, Union Minister of Coal and Mines Pralhad Joshi on Sunday said that there was “no threat of disruption in power supply”. He tweeted:

Reviewed coal production & supply situation in the country.

Assuring everyone that there is absolutely no threat of disruption in power supply. There is sufficient coal stock of 43 million tonnes with @CoalIndiaHQ equivalent to 24 days coal demand. pic.twitter.com/frskcJY3Um

— Pralhad Joshi (@JoshiPralhad) October 10, 2021

Meanwhile in a release , the ministry of coal stated, “The Ministry of Coal reassures that ample coal is available in the country to meet the demand of power plants. Any fear of disruption in power supply is entirely misplaced. The coal stock at power plant end is about 72 Lakh tonnes, sufficient for 4 days requirement, and that the Coal India Limited (CIL) end is more than 400 Lakh tonnes, which is being supplied to the power plants.”

But earlier reports claimed that India is facing a coal shortage following a sharp rise in the demand, as the economy jump-started again with the ebbing coronavirus pandemic. According to Reuters, “India’s power supply deficit in the first seven days of October amounted to 11.2 percent of the country’s total shortages throughout the year.” The shortfall in India’s power supply witnessed in the first week of October this year is 21 times more than the one witnessed in the same period last year.

But the Centre has attributed this to bottlenecks created in the supply chain due to the monsoons, rather than an actual shortage of resources.

" Due to extended monsoons the despatches were constrained. The coal available at the power plants is a rolling stock which gets replenished by the supplies from the coal companies on a daily basis. Therefore, any fear of coal stocks depleting at the power plant end is erroneous. In fact this year, domestic coal supply has substituted imports by a substantial measure…" a government release read.

So here’s what has unfolded in the last few weeks

When did the crisis surface

Coal inventories at power plants plummeted to an average four days last week, down from 13 days at the start of August, official data showed. Then as per Central Electricity Authority of India data, on 5 October, it was found out that out of 135 thermal plants that use coal for power generation, 106 or nearly 80 percent are either in the critical or supercritical stage, that is, they have stocks only for the next six or seven days. The combined power capacity of these 106 power projects is 1,33,849 MW.

Why is this happening

The Union ministry of power has listed four reasons for the depletion of coal stocks.

• The unprecedented increase in demand for electricity due to the revival of the economy
• Heavy rains in coal mine areas during September 2021 thereby adversely affecting the coal production as well as despatch of coal from mines
• Increase in prices of imported coal toan  unprecedented high level leading to a substantial reduction in power generation from imported coal-based power plants. That in turn, lead to increased dependence on domestic coal
• Non-building of adequate coal stocks before the onset of Monsoon

Coal productivity

India ranks fifth among countries with the world’s largest coal reserves and is second-placed among the top coal-producing countries after China.

More than 70 percent of the country’s electricity generation is coal-based, with 70 percent of the fuel coming from the states of Jharkhand, Chhattisgarh, Odisha, West Bengal and Madhya Pradesh.

About 98 percent of the fuel in India is Gondwana coal — the oldest kind of fossil fuel, formed around 250 million years ago.

What is the Centre doing

An inter-ministerial sub-group led by the coal ministry has been monitoring the coal stock situation twice a week, it said in a statement on Saturday. The ministry has assured that they are making efforts to send 1.6 metric tonnes of coal a day in the next three days and will try to reach 1.7 MT a day.

Condition of states

Punjab

The current situation has led to power cuts in Punjab, after the state-owned Punjab State Power Corporation Limited (PSPCL), working at reduced capacity, imposed rotational load-shedding at several places. The state-owned thermal power plants in Ropar and in Lehra Mohabbat are left with four-five days of coal reserves, independent power producer plants are down to less than two days of stock. The state, which had a demand of about 9,000 MW, has reported power cuts lasting two to three hours.

Delhi

Delhi chief minister Arvind Kejriwal shot a letter to Prime Minister Narendra Modi on Saturday over “a power crisis”. “I am personally keeping a close watch over the situation. We are trying our best to avoid it,” Kejriwal said in a tweet. Meanwhile, a Tata Power spokesperson said that they have stopped generation in Mundra as the high cost of imported coal is “making it impossible to supply under present PPA terms”.

Meanwhile, Union Power Minister RK Singh on Sunday clarified that there was no power shortage in Delhi and assured that coal supply will be maintained going forwards.

Addressing a press conference on the purported coal shortage crisis, RK Singh said he chaired a meeting with BSES officials, the NTPC and power ministry earlier in the day and confirmed that there was no problem related to supply and demand channels that could pose a power crisis.

RK Singh explained that the panic over possible power shortage started because the Gas Authority of India Ltd (GAIL) sent a message to Delhi discoms about stopping gas supply because their contract is ending.

He told CNN-News18 “Even if Bawana power plant gone goes out of stock we have enough supply on standby from other plants… When Congress left our country, it had a power deficit.”

We have an average coal reserve (at power stations) that can last for more than 4 days. The stock is replenished every day. I am in touch with (Union Minister for Coal & Mines) Pralhad Joshi: Union Power Minister RK Singh after chairing a meeting with discoms in Delhi pic.twitter.com/zKX5ndo7OQ

— ANI (@ANI) October 10, 2021

Uttar Pradesh

A total of 14 power plants have temporarily stopped functioning in Uttar Pradesh. Eight power stations stopped functioning due to the coal shortage while six other power plants have been shut in the state due to other reasons. Currently, the power demand stands at about 20,000 to 21,000 MW. However, the supply remains at only 17,000 MW. To tackle the shortage, authorities have announced a power cut of four to five hours in a few rural areas.

Rajasthan

Rajasthan on Friday had declared that it will schedule one-hour power cuts due to the nationwide coal shortage. The government-run utility said it would make the cuts in 10 major cities that are home to millions of people. It was the first state to officially schedule outages due to the crisis.

Jharkhand

Jharkhand may witness severe power outages in the coming days with the state’s lone thermal power generating unit — Tenughat Thermal Power Station (TTPS) at Lalpania in Bokaro district — reporting that it has only two days of coal stocks left.

Andhra Pradesh

In Andhra Pradesh acute supply shortfalls have pushed the state towards unscheduled power cuts, adding that crops could dry up if there is no electricity to power irrigation pumps. “More water is required in the last stage of harvesting and if it is denied, fields would dry up and farmers stand to lose,” Andhra Pradesh chief minister YS Jagan Mohan Reddy said in a letter to Prime Minister Narendra Modi.

Tamil Nadu

Tamil Nadu’s coal stocks may run out in four days to create a power crisis. According to the media reports, the state power utility cut power in some areas on Friday citing maintenance. Government data shows that the five thermal power plants run by the Tamil Nadu Generation and Distribution Corporation (Tangedco) have an average stock of 3.8 days, putting the state in the supercritical category.

Kerala

Kerala has asked its citizens to restrict use of electrical appliances such as grinders and dryers after sunset. Meanwhile, Kerala power minister, K Krishnankutty said that the state electricity board is contemplating the possibilities of a power cut if the coal shortage situation in north India continues.

Madhya Pradesh

Energy minister Pradhuman Singh Tomar said the state had coal reserves for just two days. Looking to assuage concerns, Tomar said the issue would be resolved at the earliest and the government would not let the crisis deepen. He said the Centre too was keeping an eye on the crisis and alternatives of coal were being explored.

Maharashtra, Karnataka and Telangana

Maharashtra and Karnataka too are facing coal shortage issues. Thermal stations in the two states only have coal reserves for two to three days. Meanwhile Telangana Genco officials have claimed they have sufficient coal reserves for next one week to 10 days.

Is it all bleak?

While coal stockpiles at power plants are perilously low, it remains unlikely the operations will completely run out of fuel. Government ministries and industry are working to closely monitor stocks and could move again to divert supplies away from industrial users — like aluminium and cement makers — to prioritise power generation.

What can the government do

-Experts advocate a mix of coal and clean sources of energy as a possible long-term solution

-Long term investment in multiple power sources

-Demanding more accountability from power companies in India

With input from agencies

Also read

Coal crisis: Tata Power warns Delhi customers that city may see intermittent rotational load shedding in coming days

Coal crisis deepening as 64 non-pithead power plants left with less than 4 days of dry fuel stocks