Amid concerns over increasing coal shortage in the country, Coal and Power Minister Piyush Goyal has stated that twenty-two coal-based power plants monitored by Central Electricity Authority (CEA) were reeling under fuel shortages with stocks to last less than four days as on 29th July. The Power Minister added that difficulties in supply of coal from Coal India subsidiaries due to law and order problems and deficient monsoon are the major reason for low coal stocks at power plants.
Power Minister revealed that owing to the deficit monsoon rainfall, the hydro electricity generation has reduced considerably. On the other hand, it has enhanced generation from coal-based stations to meet the country’s power requirements, increasing coal requirement by thermal power plants. During June 2014, there was a record growth of 20.35 per cent in coal-based generation as compared to same month last year. However, the minister assured that the government is taking measures to supply adequate coal to critical power plants to maintain generation.
Coal shortage in the country has become a concern for Indian power sector as coal-fired plants account for 59% of India's installed electricity capacity. Indian domestic coal demand is around 35 percent higher than domestic supply. Coal India (CIL) is the only producer of coal in the country and is struggling to meet domestic coal requirements. CIL production fell 4.21 percent short of its production target to 462.53 million tonnes in FY14 amid concerns like shutdown of mining activities in Talcher Coalfields in Odisha. The government has set coal production target at 507 million tonnes for Coal India (CIL) for FY15.
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