India is on the cusp of a historic power crisis, with coal shortages plaguing thermal power facilities across the country. According to the latest daily coal report from the Central Electricity Authority of India, coal stock at 81 of the 150 thermal power units that use domestic coal is at a critical level. The situation at commercial thermal plants is just as severe, with stock levels critical at 28 of the 54 units.
"Coal inventories in power plants remain tight at nine days' worth of stock as of mid-April and could result in power outages. If coal supplies do not improve, this could become another 'stagflationary shock', quoted The New Indian Express Shalendra Dubey, chairman of, the All-India Power Engineers Federation as saying.
He warned that the coal store in Uttar Pradesh is only kept for seven days, eight days in Haryana, and seventeen days in Rajasthan when the norm is to preserve stock for 26 days. Andhra Pradesh, Tamil Nadu, Telangana, Madhya Pradesh, Maharashtra, Gujarat, Jharkhand, and Chhattisgarh are not faring any better.
Peak electricity demand was 1,88,014 MW on April 19, 2022, with a peak-time shortfall of 4,469 MW. Peak demand in July 2021 was 2,00,570 MW, compared to 2,00,570 MW in July 2021.
The Centre, on its part, has allayed fears of a power shortage by stating that 72.5 million tonnes (MT) of coal supply is available with CIL, washeries, and captive blocks, according to coal minister Prahlad Joshi. Officials from the coal ministry, on the other hand, concede that there is a coal scarcity across the country and that a power outage cannot be ruled out.
Low coal imports
One of the reasons thermal power plants are suffering from a coal scarcity, according to an official, is that coal imports will be reduced in 2021-22. In FY22, India purchased only 25 million tonnes, roughly half of what it imported the previous year.