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Sunday, April 21, 2024

What’s The Current Coal Issue In India?

At present, the news of shortage of coal in many states of India is worrying. We will talk about the coal crisis in the country in today’s Worldly Voice.

Let’s start with some basics, India is the second-largest producer and consumer of coal, not only that, even after being the second-largest producer of Coal, India is also the third-largest importer of Coal cause 70% of power in India is produced by Coal.

Demand for coal in our country is so high that even after being the largest producer, we need to import coal from other countries. Now coming back to the question, why suddenly we are facing a shortage of coal.

So it starts with Covid, at that time the demand of things (it can be any product) were reduced, due to which production of those things was reduced hence the powers requirement also reduced due to which demand of coal too reduced. (Hope you understood the connection).

Now as soon as things started getting back on track, again the demand for things started rising, energy consumption increased and so did the demand for coal to produce energy. Now when demand for anything is more than its availability, its price increases.

Now the price of coal in the International market increased by 100% (almost doubled) and since 30% of coal is imported from other countries, it became difficult to cope up with such high price, due to which import of coal from other countries were reduced by 9-10% (from 30%).

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Now since import is reduced, it was supposed that production of Coal in our country will be increased to meet the demand but nope things went opposite. Coal production in India was reduced because of heavy rain and flood, resulting in water filling up many coal mines.

Now heavy rain and flood is not something new, to handle this many coal-powered plants are supposed to keep stocks of coal so that it can be used at the time when coal is not imported to the plants from coal mines, but it was noted that many power plants didn’t have much coal in stock.

Most of the plants have coal stock which could only produce power for up to 4 days, due to which many plants were operating at only 50% capacity so that they can run for a little longer. Due to which many states like Bihar, UP, Punjab Rajasthan, Kerala, Andhra Pradesh, and Assam are facing power cuts that can last for up to 16 hours.

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So what’s the solution? Let’s keep some questions to be answered by you, what can be the solution to tackle and decrease our dependency on coal, comment down your answer. Hope the post was informative, if you think so then do like, comment your thoughts and share with your friends.

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Kushagra Pathak
Author of Worldly Voice

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