Govt Admits Coal Shortage, Asks Discoms To Import

Govt Admits Coal Shortage, Asks Discoms To Import

The power ministry has advised all state governments and private power distribution companies (discoms) to import coal as Coal India was unable to meet the growing demand. To add to problems, there was also a shortage of rail rakes to evacuate coal. The advisory comes in the wake of states demanding more coal to run their thermal units in face of growing demand.

In Tamil Nadu, power demand shot up by 2383MW this summer. If Tangedco is to import five million tonnes of coal to meet the shortage, it would cost the state discom around $5,000, said officials.

Across the country, hydro power generation came down this summer because of low water level in reservoirs, mostly in the Himalayan states. It was after the NDA government took charge, the power ministry asked all government discoms to stop importing coal. Tamil Nadu alone was importing 5.5 crore tonnes to meet its demand in all thermal units. Read More

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