The company said in a statement Thursday that state-owned Coal India Limited (CIL) has temporarily suspended supply to non-electrified users as India is fighting one of the worst power shortages in years.
India is the world’s second-largest coal-producing country and boasts the world’s fourth-largest reserves, but the supply of state-owned Coal India is no longer due to the surge in electricity demand beyond pre-pandemic levels. Not enough.
Coal India said it has suspended all online auctions of coal, except for the power sector.
“This is only a temporary priority to overcome the low coal inventories of stressed power plants and expand their supply for the benefit of the country,” he said.
Most of India’s 135 coal-fired power plants have less than three days of fuel stock.
India is competing with buyers such as China, the world’s largest coal consumer, under pressure to increase imports in the midst of a serious power crisis.
The company said Indian customers are turning to local coal use due to rising global prices for fuel.
The government has asked electricity producers to import up to 10% of coal demand in the face of fuel shortages, and if it turns out that federal companies sell electricity on electricity exchanges to cash out soaring prices. Warned the state to curb power supply.