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Coal India ‘temporarily’ halts supply to customers outside power sector
Coal India's move comes as India is facing one of its worst coal crises in years with many coal producers in the country running out of stock, in addition to skyrocketing import prices.
Coal India Ltd, the world's largest miner, has temporarily stopped coal supplies to its customers from the non-power sector, a company official informed on Thursday. The development comes as India – the world's second largest coal producer, and among the fourth largest reserves – battles one of its worst power supply deficits in years. However, the company assured that it is only a temporary move till the situation stabilises.
"This is only a temporary prioritisation, in the interest of the Nation, to tide over the low coal stock situation at the stressed power plants and scale up supplies to them," the source, familiar with Coal India's plan was quoted as saying by Reuters.
The company has not issued any official comment on the same.
With India's economic reopening after the prolonged virus-infused lockdown, India has witnessed a surge in power demand to above pre-pandemic levels. This means state-run Coal India's supplies were no longer enough.
Coal India said it had stopped all online auctions of coal except those meant for the power sector. Additionally, most of India's 135 coal-fired power plants have fuel stocks of less than three days.
The government has even asked power producers in the country to import up to 10% of their coal needs amid fuel shortages in various states. The Centre also warned states against sale of electricity on power exchanges to cash in on surging prices, asserting that federal companies will curb their power supplies.
