India Faces Wider Coal Shortages, Worsening Power Outage Risks: Report

Virtual meeting was organized in which the Union Coal and Power Ministers were present!

Witnessing a power cut and blackout in India and a few other states surging for power cut will long lead to the more worsening scenario. India is expected to face a wider coal shortage during the quarter ending September over expectations of higher power demand, an internal power ministry presentation seen by Reuters showed, worsening risks of widespread power outages.

The country expects local coal supply to fall 42.5 million tonnes short of demand in the September quarter, 15 percent higher than previously projected, due to higher growth in power demand and lower output from some mines.

The grim forecast shows the extent of the fuel shortage in India, at a time when annual power demand is seen growing at the fastest rate in at least 38 years and global coal prices are trading at near-record levels due to a supply crunch resulting from the Russia-Ukraine crisis.

Only one state had awarded a contract to import coal as of end-April, a power ministry import status report reviewed by Reuters showed.

According to the information, India expects a domestic coal supply of 154.7 million tonnes, 42.5 million tonnes short of the projected requirement of 197.3 million tonnes in the September quarter, the presentation showed. It previously expected a shortage of 37 million tonnes.

India now expects the demand for coal from utilities to be 784.6 million tonnes for the year ending March 2023, the presentation showed, 3.3 percent higher than projected earlier. The projected annual coal shortage is now 49.3 million tonnes, nearly three times the 17.7 million tonnes projected earlier, the presentation showed.