Coal, which accounts for more than half of Indian Railways’ freight revenue, accounts for nearly 75% of India’s electricity generation
Coal, which accounts for more than half of Indian Railways’ freight revenue, accounts for nearly 75% of India’s electricity generation
Indian Railways deliveries of trains to Coal India to transport coal have fallen short of their monthly targets for more than a year, government data showing the troubles behind India’s worst power crisis in over six years showed.
Indian utilities are scrambling to source coal stocks to meet record-high electricity demand, but India’s railways’ inability to supply enough trains is making it difficult to increase coal stocks, which are at their lowest level in years.
Inventories at Indian power plants fell 13% in April, despite a 27.6% increase in Coal India output, as a heatwave pushed power demand to a record high.
In April, state-owned Indian Railways delivered 261 trains a day to Coal India for the power industry, the lowest number in three months.
Indian Railways said in late April it would scrap passenger trains to free up tracks and help haul more coal to power plants.
Coal, which accounts for more than half of Indian Railways’ freight revenue, accounts for nearly 75% of India’s electricity generation. The state-owned company Coal India produces 80% of India’s coal.
Indian Railways supply targets are set following consultation between Indian Railways, the Department of Energy and Coal India.
Coal India has prioritized supplying utilities to avert a power crisis, and its shipments to the non-power sector fell to a six-month low of 3,04,933 tonnes per day in April, down 21.3% from the same period last year, it said the government data.
Deliveries to the non-energy sector, which includes aluminum smelters and steel mills, were also hit by Indian Railways’ deployment of fewer trains. Coal India’s shipments to the non-energy sector via Indian Railways fell to their lowest level in six months, the data showed.
Officials at state-owned aluminum producer NALCO filed a court case in April over a coal supply shortage caused by the diversion of coal shipments and a shortage of trains.
India’s non-power sector has drawn more expensive electricity from the national grid as coal supplies to its power plants are in short supply, industry officials say.
