New Delhi: The Union Ministry of Power has listed four reasons behind the reduction of coal stocks in India. Recently, chief ministers of Delhi, Punjab, and Andhra Pradesh has raised an alarm against “a power crisis” due to the “coal shortage situation”. The coal stock situation is being continuously monitored twice a week by an inter-ministerial sub-group led by the Union Ministry of Power.


The reasons stated by the Union Ministry of Power are an unprecedented increase in demand for electricity, heavy rainfall in coal mine areas during September 2021, increase in prices of imported coal to an unprecedented high level, and non-building of adequate coal stocks before the onset of Monsoon. 


In the letter seeking Prime Minister Narendra Modi‘s “personal intervention”, Delhi Chief Minister Arvind Kejriwal wrote, “I draw your attention to the prevailing coal shortage situation that is continuing since August/September 21 for the third month in a row, which has affected the power generation from the major Central Generating Plants supplying power to NCT of Delhi”.


"There are four reasons for the depletion of coal stocks at the power plant end- unprecedented increase in demand for electricity due to the revival of the economy; heavy rains in coal mine areas during September 2021 thereby adversely affecting the coal production as well as despatch of coal from mines; increase in prices of imported coal to unprecedented high level leading to a substantial reduction in power generation from imported coal-based power plants leading to more dependence on domestic coal; non-building of adequate coal stocks before the onset of Monsoon," reads the issued statement.


"Power consumption for the period August-September has progressively increased from 106.6 BU per month in 2019 (normal non-covid year) to 124.2 BU per month in 2021. During this period the share of coal-based generation has also increased from 61.91 per cent in 2019 to 66.35 per cent in 2021. As a consequence, total coal consumption in the month of August-September, 2021 has increased by 18 per cent in comparison to the corresponding period in 2019," the statement further reads.


According to a report by the BBC, power consumption in India in the last two months alone jumped by almost 17 per cent, compared to the same period in 2019.


The coal shortage issue comes as global coal prices increased by 40 per cent at the same time and India‘s imports fell to a two-year low.