India in grips of power shortage, coal inventory at power plants down to nine-year low

Thursday, 28 April 2022 11:14:21 (GMT+3)   |   Kolkata

Acute power shortages are emerging across India and coal inventories at thermal power stations are down to lowest levels in nine years, with electricity demand rising at the fastest rate in 38 years, impacting industrial operations, SteelOrbis learned from industry and government officials on Thursday, April 28.

Government officials said that coal inventories at thermal power plants are down to nine days consumption equivalent, against the government norm to maintain at least 24 days’ consumption equivalent of coal stocks.

Maximum electricity demand touched 201 gigawatts (GW) and is expected to touch 215-220 GW in May-June, surpassing maximum demand of 200 GW in June 2021.

The power shortage and frequent outages are beginning to take a toll on industrial production. Kia Motors operating a passenger car factory in the southern state of Andhra Pradesh reported an electricity shortage of 8.5 percent of normal demand.

Ferrochrome producer Facor Limited which also operates its plant in Andhra Pradesh also reported that its output has dropped 50 percent owing to power shortages and outages.

According to media reports, other states of Maharashtra, Uttar Pradesh and Gujarat have imposed forced power cuts for specific hours daily.

The most industrialized states of Maharashtra, Gujarat and Tamil Nadu plan to import 10 million mt over the next two months to beef up feedstock for thermal power plants located in those states.

AjoyDas
Ajoy Das
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I graduated from the University of Kolkata with a degree in economics and have three decades of experience in reporting for leading print media publications, covering key manufacturing industries like iron and steel, energy (fossil and renewable), chemicals and petrochemicals and mining sectors (coal, bauxite, iron ore and copper). I work as a correspondent for SteelOrbis reporting on the Indian steel industry covering pricing and trade trends across the value chain, capacity creations and utilizations, corporate developments, government policy frameworks and industry related news.

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