The import of thermal coal is likely to increase in the coming months, as Coal India is set to miss its production target again – for an 11th straight month – causing a fuel shortage at the country’s thermal power plants. This is particularly worrisome as the demand for coal is likely to increase further as summer approaches.
The coal monolith’s output from April 2017 to February 2018 stood at 495.09 mt, seven per cent lower than the 531.32 mt target set by the coal ministry. Similarly, sales volume during this period is set to fall three per cent short of the 541.60 mt target.
With less than a month left in the present financial year, the world’s largest coal miner looks set to miss its 600 mt annual target for 2017-18.
The situation in the power sector, on the other hand, continues to deteriorate. As on February 28, 2018, as many as 51 power plants were classified as critical or super critical, with the average coal stock standing at 10 days’ requirement, as against the prescribed norm of 22 days’. Read More…