Centre to increase coal production to 2 million tonnes per day

By Rajan Nath -- October 13, 2021 11:01 am -- Updated:October 13, 2021 11:05 am

Centre is all set to meet the demand for coal by states and power companies and railways. The government of India is ramping up its per day coal production from 1.94 million to 2 million tonnes within a week.

Government sources said that there was no shortage in the daily supply of coal to states and power companies and it was maintaining 5 days' stock.

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In a month's time situation will be back to normal. There are multiple reasons for the current scenario.

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The government source said, "Since January coal ministry has been writing to various states to pick up and stock coal in their respective states but no one paid heed. Coal India can stock up to a limit. If we stock more coal than the limit there is a risk of fire."

Rajasthan, West Bengal, Jharkhand have their own mines but they did little to extract coal. It is learnt that despite clearances some of the state governments sat on decisions and gave COVID and rains as a reason for not doing enough mining.

Prolonged monsoon affected the mining and the shooting prices of imported coal also contributed to the current situation.

Coal production to grow marginally in 2020 due to Covid-19 disruptions

There is a 12 per cent fall in imports of foreign coal which power companies blend, to cut losses due to high prices they also shifted to domestic coal.

States have huge pending dues of Coal India on them. It is learnt from sources that Maharashtra, Rajasthan, Madhya Pradesh, Karnataka, West Bengal and Tamil Nadu are big defaulters. All States have to dues of Rs 20,000 crores to be paid to Coal India.

-PTC News

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