Muted coal production no barometer for power sector’s health: power ministry

Muted coal production no barometer for power sector’s health: power ministry

The sluggish growth in coal production in this financial year masks the robust growth in power generation as record-high inventory of coal at power stations at the beginning of this fiscal year (after years of critically low supplies) is feeding electricity generation, according to an analysis by the power ministry.

The slow growth in coal output—1.8% between April and January in 2016-17—does not reflect the 6.2% jump in thermal power generation this year from the year-ago period as plants sought to cut down coal inventory, said a performance analysis of 110 closely-monitored power plants across the country by the power ministry.

As per this analysis reviewed by Mint, coal inventory at plants which was at 39 million tonne last April—sufficient to run them for two months—has come down to 20 million tonne as on 1 January 2017. Read More…

Credit By : Livemint

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