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Coal India temporarily halts supplies to non-power customers



Coal India Limited has temporarily stopped supply to non-power customers

State-run Coal India Limited (CIL) has temporarily stopped supply to non-power users, the company said in a statement on Thursday, as India grapples with one of its worst power supply losses in years. .

India is the world’s second-largest coal producer, with the world’s fourth-largest reserves, but a surge in electricity demand above pre-pandemic levels means that state-run Coal India’s supply is no longer sufficient.

Coal India said that it has stopped all online auction of coal for the power sector.

“This is only a temporary priority, in the interest of the nation, to deal with the situation of low coal stock in stressed power plants and augment supply to them,” it said.

Most of India’s 135 coal-fired power plants have fuel reserves of less than three days.

India is competing against buyers such as China, the world’s biggest coal consumer, which is under pressure to increase imports amid severe power shortages.

The company noted that Indian customers have turned to local coal due to higher global fuel prices.

The government has asked power producers to import up to 10 percent of their coal needs amid fuel shortages and warned states if federal companies sell electricity on power exchanges to cash in on rising prices for their power supplies. Will stop


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