India is dependent on coal for 70% of its power generation. And hence, a shortage in coal supply is becoming a huge problem. The demand for 24*7 electricity supply has also risen with summer in full swing. The yearly coal supply to the non-power sector is just 8% still the non-regulated sector is facing a fuel shortage. India is facing a national coal crisis. Necessary steps must be taken to equalize the demand and supply of electricity.
The Russia-Ukraine war has shot up energy prices around the globe rapidly. Also, the propensity to import coal by power plants has been reduced. One way to deal with this coal crisis is if the government provides subsidies to private power generation units. But if subsidies are provided, inflation will be on the rise and if subsidies are not provided, the private power generation units will not take the burden to generate electricity efficiently. And hence, productivity will fall. Those power companies who have their reserves of coal will be an advantage but they alone cannot fight back this national crisis. As a result, this coal crisis is turning out to be a double-edged sword affecting the common man.
CURRENT SCENARIO IN THIS COAL CRISIS SITUATION
As per the Central Electricity Authority, the stock in power plants is less than 25% of the normal stock. About 100 of the 173 coal power plants are facing a shortage. Reuters reported that power plants had an average stock of only nine days against the required stock of at least 24 days. This is the lowest since 2014. The government has released revised coal stocking norms that make it compulsory for the powerplants to maintain sufficient stocks and blend in imports if required. It is of utmost importance that the government takes prudent decisions to mull over this crisis that benefits its citizens.
Do read: CURRENT COAL SHORTAGE IN THE COUNTRY