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Coal Fall in India

  • Posted By
    10Pointer
  • Categories
    Economy
  • Published
    9th Oct, 2021

Context

Thermal power stations are facing severe coal shortages, and coal stocks have dropped to four days of fuel in a growing number of thermal power stations.

Reasons for the shortage of coal

  • Eruption in Power demand: Economy recovering from the Covid-19 pandemic coupled with supply issues have led to the current coal shortage.
    • India consumed 124 billion units in August 2021 compared to 106 billion units in August 2019.
    • In addition 28.2 million households and these households are buying lamps, fans and television sets which has led to an increase in demand for 200 Gigawatts during the Covid period.
  • Increased Share of Thermal Power Plants: Coal fired thermal power plants have also supplied a higher proportion of the increase in demand leading the share of thermal power in India’s power mix increasing to 66.4% from 61.9% in 2019.
  • Floods and Rainfall: Lower than normal stock accumulation by thermal power plants during the April-June period and continuous rainfall in coal-bearing areas in August and September which resulted in lower production and less supply of coal from coal mine.
  • Import Reduction: The steady movement of low imports coupled with high international coal prices has also led to a reduction in coal imports.

Coal

  • This is the most common fossil fuel.
  • It is used as a domestic fuel, in industries such as iron and steel, steam engines and generators.
    • Electricity from coal is called thermal energy.
  • The coal we use today was formed millions of years ago when giant ferns and swamps got buried under the layers of the earth. The coal is therefore called Buried Sunshine.
  • The leading coal producers of the world include 
    • China
    • US
    • Australia
    • Indonesia
    • India
  • The coal producing areas of India include 
    • Raniganj
    • Jharia
    • Dhanbad
    • Bokaro
  • Coal is also divided into four categories:
    • Anthracite
    • Bituminous
    • Subbituminous
    • Lignite
  • The ranking depends on the types and amounts of carbon the coal contains and on the amount of heat energy the coal can produce.

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