Rising electricity demand drives coal supply to power plants up 17% in July

NEW DELHI: Coal supply to power plants increased by 17.09% to 58.45 million tons in July due to increased power demandaccording to government data.
Over the past few months, the government has taken various measures to ensure adequate availability of coal for power plants.
According to provisional data from coal ministry.
Overall coal shipment to the country increased by 8.51% to 67.81 MT last month from 62.49 MT in the corresponding month of the previous fiscal year.
Overall coal production also increased by 11.37% to 60.42 MT in July from 54.25 MT the previous year.
Earlier, the government mandated Coal India (CIL) to import coal as an emergency measure to avert fuel shortage in power utilities and build up a buffer stock.
The state-owned company accounts for more than 80% of India’s coal production.
Subsequently, CIL awarded the contract to supply 7.91 lakh tonnes of imported coal to PT Bara Daya Energy Ltd (consortium) to power generation companies (gencos) in August and September.
Gencos that had expressed willingness to purchase imported coal included CESC, Adhunik Power, Rattan India, Sai Wardha and Avantha Power & Infrastructure Ltd.
On June 9, CIL launched its first tender to import 2.416 million tons of coal. On June 10, CIL launched two medium-term tenders for the supply of 6 MT of additional coal abroad to ensure domestic fuel supply in the fear of a shortage during the monsoon.
The move was part of the government’s efforts to build up a stockpile of coal to avoid a repeat of the power outages that occurred in April due to the shortage of fossil fuels. Coal shortages at various power plants impacted the country’s electricity supply during the peak summer months of April and May.