INDIA’S COAL DEMAND AND LOOMING POWER SHORTAGE

Amid growing economy and rising productivity after the second wave of covid-19, the nation of 1.4 Billion is set for another possible crisis. Demand for electricity and shortage of coal in thermal power plants have left the country in confusion. The country at this unprecedented condition is left to wonder if it can make out unscathed.

 

The issue of power production-

Of the 135 thermal power plants in the country, most of them are running on fumes, with critically low levels of coal and some virtually being exhausted.

India is the largest importer of coal, due to various issues have met with falling imports and coal shortage.

Electricity produced in the coming months might not be sufficient with the possibility of power cuts in many states.

 

Coal shortage and its influence-

While the country’s coal import fell to a two-year low, an increase in the production within the country is being emphasized.

The coal which was imported at Rupees 5500/tonne in March from Indonesia has risen exponentially to Rupees 8000/tonne in September, due to which the import of coal will become a question of thought.

India is the fourth largest reservoir for coal, but extended monsoon and floods delaying transportation has caused an increase in coal demand.

The extent of fossil fuel prices and export of coal from other countries in international markets has raised concern among top countries like UK and China, where factories and schools are shut to meet the power demand.

 

 

 

The government’s response-

The government is looking at the possibility of coal imports although it is highly unlikely at this time.

According to power minister RK Singh, the situation is a mere “touch and go”, but has warned that people need to brace themselves in the next 5-6 months.

Industrial experts feel that the Government, as they’re right now doing should also look for alternative energy sources and reduce its dependency on coal.

 

Who will likely be hit?

Since coal is the major energy form of India constituting about 70% of the energy sector, its shortage will land a heavy blow in almost every sector.

States like Gujarat, Haryana, Tamil Nadu, Maharashtra are expected to be hit with states like Chattisgarh and Bihar already experiencing as much as up to 13 hours of power cut.

Industries currently which are reeling from Covid second wave will plunge into the darkness, while households across the countries can experience routine power cuts.

 

 

 

Why importing more coal won’t work-

Since coal prices are fairly extreme, importing coal and burning it will only cause inflation in the current electricity prices. Such inflation in prices will indirectly result in increasing prices of consumer products and thus, indirectly fall on the consumers.

 

What can be done-

While the possibilities are being discussed we can help to reduce usage and wastage, while also using it efficiently.

Look for alternative sources as well as ideas for energy demand.

Help India push towards green energy which the leading countries like UK and Japan are working on.