Due to reduced demand of power during the monsoon period, around six states have asked Coal India Limited (CIL) to restrain the coal supplies to them.
The lack of demand for coal can also be linked to lesser demand for electricity during monsoon in general and power from thermal in particular, as rains have improved hydro power production.
Due to this, states like Gujarat, Rajasthan, Haryana, Punjab, Tamil Nadu and West Bengal have asked CIL not to supply coal more than the registered quantity or more than the trigger level as there are no takers for the coal produced.
This shall help CIL to divert some of coal to power plants of other states which are struggling to generated power due to lack of coal.
As per official estimates, the coal requirement during the current fiscal for the power sector is estimated at 548 million tonnes (MT).
Of the domestic availability during the current fiscal, 377 MT is likely to come from Coal India, 36 MT from SCCL (Singareni Collieries Company) and 28 MT from captive coal blocks.
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