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Coal stocks at power plants decline to 25-year low at 7.2 MT: CEA

17 Oct 2014 Evaluate

The Central Electricity Authority (CEA) has stated that Coal stocks at power plants hit a new low in 25 years as state-owned Coal India (CIL) and its subsidiaries failed to meet their production targets.  In its latest report, the CEA highlighted that total fuel stocks at 103 coal-based stations have come down to 7.2 million tonnes (MT) compromising 6.58 million tonnes of indigenous coal and 706 tonnes of imported fuel.

The CEA has noted that Coal India’s production is not in line with the demand of the power sector and its subsidiaries Northern Coalfields (NCL) and Central Coalfields etc are not producing coal as per their respective targets. Around 61 thermal power stations are grappling with critical coal shortage with less than a week’s stock at their disposal. Among these, 36 stations are reeling under acute shortage with less than four days of stockpiles at their disposal.

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, resulting into a high deficit of which a huge part is being met by costly imports from Indonesia, South Africa and Australia. 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 to Coal India (CIL) for FY15. 

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