InvestorQ : Why is Coal India looking to boost supplies to power stations substantially?
vidhya Laxmi made post

Why is Coal India looking to boost supplies to power stations substantially?

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sarah Leo answered.
3 months ago
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Coal India is up against a major coal supply crisis at its leading thermal power clients including NTPC, Tata Power etc. CIL has already stepped up the coal supply sharply to an average of 1.71 MT a day during the first eight days of September. This is nearly 15% higher compared to the mean figure of 1.49 MT of coal supplied last year. Coal India will be looking to augment supplies further to 1.80 MT per day in the next few days to handle the crisis.

The crisis arose after close to 15 GW of power generation capacity was left with just about 2 days of coal stock and another 11 GW was left with just six days of coal supply. The reasons include the disruption in coal mining due to delayed monsoons and state defaults resulting in CIL regulating its supplies and shifting to the cash-and-carry system of coal supply. Global coal prices are up sharply and that is forcing power plants to serious look at local supplies.

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