Sansad TV Perspective: Coal “Crisis”: Ground Reality

In the series Sansad TV Perspective, we bring you an analysis of the discussion featured on the insightful programme ‘Perspective’ on Sansad TV, on various important topics affecting India and also the world. This analysis will help you immensely for the IAS exam, especially the mains exam, where a well-rounded understanding of topics is a prerequisite for writing answers that fetch good marks.

In this article, we feature the discussion on the topic: Coal “Crisis”: Ground Reality

Anchor: Vishal Dahiya

Participants:

1. Vinod Kumar Tiwari, Additional Secretary, Ministry of Coal, GOI
2. Dr. Prodipto Ghosh, Distinguished Fellow, TERI
3. Naveen Munjal, Director, Business Development & Commercial, Apraava Energy

Context: 

Coal forms the cornerstone of industries and accounts for 55% of the energy needs of the country. In recent times, the coal sector in the country has witnessed an extensive imbalance in supply and demand. Establishing an ecosystem of green and clean energy will be a time taking process. However, India has taken exemplary steps to reduce the dependence on coal and fossil fuels for energy and head towards a low carbon future. However, the present demand for energy depends on coal to a greater extent and a crisis in the supply chain of coal is a major concern and requires introspection by experts. 

Possible reasons for the coal crisis:

• Sharp rise in power demand
• Supply disruptions due to extended monsoon
• Reduction in imports because of sharp rise in international prices

The Government’s take on the issue: 

• It was informed in the Parliament that there is no coal shortage in the country.
• Coal India Limited also informed that dry fuel for power is adequate to meet the demands till the end of this financial year and it is trying to increase the production to secure a stock of 70 million tons by the end of the present fiscal year.

Review of coal supply by the PMO

• The shortage of coal has resulted in forced rotational power cuts in many states like Rajasthan, Kerala. 
• An assessment of coal availability was carried out and ways were ascertained to increase the transport capacity of coal.
• Directives have been issued to the coal ministry to speed up the supply of coal and railways have been asked to transport the fuel supplies to power plants. 
• To avert the power crisis the power ministry has instructed the states not to sell power at high prices.
• State-owned Coal India Limited has been asked to enhance the coal supply to power producers to 1.55- 1.6 million tons per day and scale up to 1.7 million tons.

Overview of the Coal Crisis:

• There were a number of states like Delhi, Rajasthan, Punjab that raised concerns about potential blackouts as a result of coal shortage as coal accounts for about 70% of power generation in the country.
• It was reported that many thermal power plants with a capacity of 17,475 MW operated with zero reserve stocks or with stocks that could last for a few days.
• A thorough analysis of the situation inferred that the coal shortage was more prominent in non-pithead plants. Non-pithead plants are those that are not located close to the coal mines (about 1500km away). There are 98 out of 108 plants that are non-pithead.

Report by the Central Electricity Authority(CEA): 

• It revealed that 25 non-pithead power plants had coal stocks less than seven days in the month of October 2021.
• 64 non-pithead power plants had less than four days’ stock of dry fuel.
• It was reported by CEA that seven non-pithead power plants had less than five days of coal stock which is considered supercritical and one such plan had less than nine days of stock of dry fuel which is regarded as critical.
• Among the pithead plants, 3 of them had less than three days of coal stock which is supercritical and seven of them had less than seven days of stocks of dry fuel which is critical.

Ways Suggested:

• It was emphasized by an expert that Coal India is planning to ramp up the production to ensure that there is no shortage in the supply of coal.
• It is highly recommended that the government must develop policies to restructure the coal grades pricing mechanism from the mines till it reaches the end-user.
• Expediting the capacity building for renewable energy offers a sustainable solution for the future but it is inferred as a futuristic measure that is time-consuming in accordance with experts’ opinions.
• The roadmap for renewable energy to raise non-fossil energy capacity to 500 GW with the adoption of green technology like the National Hydrogen Energy Mission, wind energy and solar energy can pave a way for the energy transition to a climate-friendly and energy-efficient method of power consumption with minimal dependence on coal. 

Read more summaries of Perspective in the link.

Perspective: Coal “Crisis”: Ground Reality:- Download PDF Here