Coal-consuming firms such as private sector power producers and cement manufacturers are facing a crisis due to a shortage of the fuel – a key input, thanks to a surge in demand for electricity during summer and a rise in global prices of coal.
“Independent power producers (IPPs) are reeling under immense pressure due to unavailability of coal coupled with rising price of imported coal. A mere 55% of plant load factor itself reflects how IPPs are paralysed. With each passing day, more and more capacity is turning stranded for the private power producers,” an executive at a leading private sector power producer told DNA Money.
The demand for power has reached such a state that the coal ministry has decided to prioritise supplies to state-owned power plants like NTPC over private players. Read More