Coal India halts coal supply for non-electricity purposes

Coal India, producer of 80% of the coal in the country, has decided to suspend supplies of coal and eTender for non-electricity purposes for the time being as India's energy crisis worsens. Even as Coal Minister Prahlad Joshi said there is no need for panic and that the situation has improved, reports have emerged that show coal in 17 plants has been completely exhausted and as many as 112 plants are facing a severe crisis. As a result power cuts are happening in many states including Uttar Pradesh.

The eTender facility has been used to purchase coal online through tenders at specific periods of time. It has also ground to a halt until further notice. However the Union power ministry said if the shortage on Tuesday was of 11 gigawatts, it came down to 5 gigawatts (GWA) by Thursday.

Kerala is also buying electricity at ₹6 higher than normal rates from outside instead of from the alternative Kayamkulam Thermal Power Plant, which is a Combined Cycle Power Plant powered by imported and indigenous naphtha, a flammable liquid hydrocarbon mixture. The plant remains idle despite still being paid at fixed rate of 100 crore per year from the KSEB. WhIle the KSEB used to purchase electricity from here, it has stopped due to prevailing high power prices.