Power stations' coal stocks lowest since 2012 blackouts

There was a sharp fall in power output on Thursday from a plant in Gujarat that left the country more than 9,000 MW short of peak demand

Reuters New Delhi
Last Updated : Aug 29 2014 | 2:25 PM IST

Half of India's thermal power stations have less than a week's supply of coal on hand, according to weekly data, the lowest level since mid-2012 when millions of people were left without power in one of the world's worst blackouts.

There was a sharp fall in power output on Thursday from a plant in Gujarat that left the country more than 9,000 megawatts short of peak demand, according to two officials at the state grid operator.

Any grid collapse would cast doubt on the crisis management skills of the new government led by Prime Minister Narendra Modi, whose achievement in ensuring 24-hour power supplies in his home state of Gujarat helped him to election victory in May.

Commenting on Thursday, Power and Coal Minister Piyush Goyal said: "I don't know about the possibility of a breakdown ... There is a problem, I think, with many of the coal supplies."

The figures, released by the Central Electricity Authority (CEA) on Tuesday and accessed by Reuters on Friday, showed that 50 of India's 100 thermal power stations had enough coal to last less than seven days.

Taken as a whole, India's thermal power generators have six days of supplies - far short of the 15-30 days set as an operating norm by the CEA.

Plants are running short of the fuel due to lower supplies from Coal India Ltd, the state behemoth that has become a byword for inefficiency.

Cautious moves to open up coal mining to competition have, meanwhile, been thrown into chaos by a Supreme Court ruling this week that all coal block allocations since 1993 were illegal.

*Subscribe to Business Standard digital and get complimentary access to The New York Times

Smart Quarterly

₹900

3 Months

₹300/Month

SAVE 25%

Smart Essential

₹2,700

1 Year

₹225/Month

SAVE 46%
*Complimentary New York Times access for the 2nd year will be given after 12 months

Super Saver

₹3,900

2 Years

₹162/Month

Subscribe

Renews automatically, cancel anytime

Here’s what’s included in our digital subscription plans

Exclusive premium stories online

  • Over 30 premium stories daily, handpicked by our editors

Complimentary Access to The New York Times

  • News, Games, Cooking, Audio, Wirecutter & The Athletic

Business Standard Epaper

  • Digital replica of our daily newspaper — with options to read, save, and share

Curated Newsletters

  • Insights on markets, finance, politics, tech, and more delivered to your inbox

Market Analysis & Investment Insights

  • In-depth market analysis & insights with access to The Smart Investor

Archives

  • Repository of articles and publications dating back to 1997

Ad-free Reading

  • Uninterrupted reading experience with no advertisements

Seamless Access Across All Devices

  • Access Business Standard across devices — mobile, tablet, or PC, via web or app

More From This Section

First Published: Aug 29 2014 | 12:49 PM IST

Next Story