Thursday, May 05,
News about further shortfall of coal fears to trip the power sector with a cascading impact on the country’s growth.* Over 40,000 MW of new generation capacity could get hamper for years due to this shortage.
Unwelcome news for power sector players as coal shortage crisis build up according to the estimates, coal-fired generation projects cumulatively adding up to 62,680 MW are slated to come up over the next five years, requiring an additional 313 million tonnes of coal. Against this, the incremental coal availability indicated by CIL is only 100 million tonnes.
Besides, blending of costlier imported coal involves a trade off in terms of higher generation costs, something that NTPC Ltd is already grappling with. The country’s largest power generator is currently blending about 10 per cent imported coal at its power plants to tide over the deficit, resulting in a 30 paisa per unit increase in the price per unit (kilo watt hour).
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