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Indian cos unscathed for  now  from power crisis: Crisil

Coal India's production target is 660 mt for the current financial year, with offtake expected to be 740 mt. (Photo: Reuters)Premium
Coal India's production target is 660 mt for the current financial year, with offtake expected to be 740 mt. (Photo: Reuters)

Regulated coal supplies to non-power sectors and allowing the participation of captive miners amid the increase in production by CIL may help corporate India avoid what appeared to be a major power crisis in the making, but the threat still looms when power demand picks up, CRISIL said

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NEW DELHI : Increased production by state-run Coal India Ltd (CIL), rationing of coal supplies to non-power sectors, and the participation of captive miners may have helped Indian companies avoid a major power crisis, but the threat still looms, according to a report by credit rating agency CRISIL. Coal stock levels are most critical in Bihar, followed by Karnataka, Maharashtra, and Rajasthan, the report said. India’s daily electricity consumption crossed 4 billion units (BU) resulting in a 18% spike in coal consumption in August-September compared to the corresponding period of 2019.

At a meeting among coal minister Pralhad Joshi, power and renewable energy minister Raj Kumar Singh, and railways minister Ashwini Vaishnaw on Tuesday, it was decided that daily coal supplies to power plants will be increased. The plan involves ensuring coal stocks reach 10 mt by Diwali, from the existing 7.5 mt. “Regulated coal supplies to non-power sectors and allowing the participation of captive miners amid the increase in production by CIL may help corporate India avoid what appeared to be a major power crisis in the making, but the threat still looms when power demand picks up," CRISIL said.

Depleted coal stocks at power plants led to concerns over a possible electricity shortage, more so, as coal fuelled power projects at 202.22 gigawatt account for more than half of India’s power generation capacity.

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