India is hit by an intense coal crisis this festival season with average coal stock at power plants dropping to six days in October, from nine days in September.
While coal is in short supply for more than a year now, it is arguable if the situation was as bad in the recent past.
The crisis is reflecting in the volatility in the spot market for electricity, with round-the-clock average tariff hovering between ₹7 a kilo Watt hour and nearly ₹8/kwh over the last couple of days at IEX.
According to daily reports of the Central electricity Authority (CEA), 30 non-pithead power stations have critical stock of less than seven days, and 17 of them have less than four days’ stock, as on October 11. Read more