Why Power Crisis in India: Shortage of Coal, More Demand or Dues to States? what is the real reason behind the power crisis?

On March 17, 2022, the energy minister said in the Lok Sabha that the total generation capacity of the country's power stations is 395.6 GW. The maximum demand has been only 203 GW. The reason for the current crisis was attributed to the sudden increase in demand. However, this maximum demand is 207.11 GW. That is, much less than the government's stated generation capacity of 395.6 GW.

Powerstation stopped working due to low supply of coal.                                          Source: Pixabay
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The power crisis has been the most talked about for the past several days. Every day different reasons for this crisis are coming to the fore. Sometimes there is talk of demand supply, sometimes dues of power companies, sometimes heat is cited as the reason, and sometimes the lack of coal rakes is said to be the reason. What is the real reason for this? Let us understand from this story of this crisis.

This is from 17th March 2022. The question was asked to the government in the Lok Sabha that there is a shortage of electricity in the country. In response, Energy Minister RK Singh gave. Singh said that there is sufficient availability to meet the demand of electricity. Presenting the data, the energy minister said that as on February 28, the total generation capacity of the power stations in the country is about 395.6 GW and the maximum demand has been only up to 203 GW. This did not happen even for one and a half months and the power crisis started increasing in the country. It was said that this is happening due to the sudden increase in demand with increasing heat. It was also said that the demand for electricity is at a record level. Do you know how much this demand has happened? Max 207.11 Giga Watts. That is, much less than the government's stated generation capacity of 395.6 GW.

One more thing is being said. This crisis has come due to the shortage of coal. On this too, a statement came from the government on Saturday. Union Minister Prahlad Joshi said that during UPA, 566 million tonnes of coal were supplied and today we are supplying 818 million tonnes. Chhattisgarh Chief Minister Bhupesh Baghel retaliated on this claim of the government. Baghel asked, 'If there is no shortage of coal, then why are trains being cancelled across the country?' Baghel said, 'You are getting such expensive coal from abroad and you are not even paying royalty to the states. You are harming the states, you are not even paying royalty to the coal here.

Now you will say where is the problem? What is the demand and supply position of coal? Could the situation get worse going forward? Let us answer all these questions…

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Where is the trouble?

Experts say that the demand for electricity has increased with increasing heat. This demand is at record level. Power companies are short of coal to meet this demand. The demand and consumption of coal has increased by 20 per cent. Efforts are being made to meet the sudden increased demand. Coal companies have supplied 15 percent more coal to power companies in April this year as compared to 2021. Which is five percent less than the demand.

A major reason for this crisis is also dues of power companies. On the one hand, the power distribution companies have not paid crores of rupees to the power generation companies. On the other hand, power generation companies also owe crores of coal companies. It is being claimed in the reports that these dues are up to Rs 1.23 trillion. Which is about 17 percent more than last year. States like Tamil Nadu, Maharashtra, Rajasthan, Uttar Pradesh, Andhra Pradesh and Telangana account for 70 per cent of the dues.

However, government companies like NTPC are supplying even after non-payment of dues. At the same time, some companies are refusing to supply due to non-payment of dues even after the rule. Union Energy Secretary Alok Kumar told a newspaper that the state governments of the six states which have the highest dues have not been able to pay the subsidies given to the discoms. Along with this, the electricity bills of government departments are also outstanding.

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What is the demand and supply position of coal?

The maximum demand reached 207.11 GW on April 29. Which was the record. There was a total energy shortage of 214 million units in the country on this day. The northern region was the worst hit with an energy shortfall of 156.5 million units. That is, there was the most crisis in this area. This is the difference due to which the power crisis deepened. However, on April 30 and May 1, the demand for electricity decreased. Along with this, the demand-supply gap also narrowed. On May 1, this demand came down to less than 200 GW.

The gap between the demand and supply of energy is being attributed to the non-supply of coal. To bridge this gap, Railways has increased the frequency of freight trains by cancelling more than 650 passenger trains, so that coal can be transported to the power plant faster. Thermal power plants to generate electricity from coal should have a coal stock of at least 24 days, but there are many such plants in the country where less than 10 days of coal is left.

Could the situation get worse going forward?

In the last two days, due to the changed weather and lack of demand, this crisis has reduced a bit for the time being. However, the heat is expected to increase in the coming days. This will once again increase the demand. In such a situation, from coal companies to power companies, will have to prepare for this. Coal India produces 80 percent of the total coal production in the country. Despite record production, the demand-supply gap is not being bridged. Keeping this in view, Coal India has set a target of increasing the supply by 4.6 per cent to 565 million tonnes in this financial year. In view of the increasing demand, the Ministry of Power has asked to increase the import of coal to 36 million tonnes. Which is the highest in the last six years.

Even six months ago, there was talk of such a crisis because of what was it?

After the second wave of Corona, the demand for electricity increased in the industrial sector of the country. Coal prices reached record levels in the international market. Whereas the prices in the country were quite low. Due to this difference, the difficulties of import increased. At that time, Coal India had said that due to rising prices in the international market, we had to depend on domestic coal production. This situation arose due to the gap between demand and supply. However, the situation did not deteriorate with the onset of winter. At the time of that crisis, there was a one per cent gap between the demand and supply of electricity. Whereas, in the last seven days itself, this difference has become 1.4 percent. This time such a situation has arisen in the beginning of summer. The demand for electricity will increase further. The situation is worsening with the Russo-Ukraine war. Because of this, the crisis is likely to deepen. Read More

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