Coal news and updates

Demand soaring: ‘Tolling’ on the table as imported coal prices heat up

The Centre may soon ask states to use tolling to allow other thermal power plants to utilise their coal linkages and transmit power to reduce the need to transport coal, as per a senior government official.

In a repeat of the post-monsoon shortage seen last October, high global prices have led to greater demand of domestic coal for power supply from thermal stations. Rising demand for power due to the onset of the summer season as well as the post-Covid economic recovery is also putting pressure on thermal plants. This has led to supply concerns. States, including Andhra Pradesh, Madhya Pradesh, Telangana, Punjab and Bihar, have already faced blackouts as a result of the crunch. On Friday, 72 plants that utilise domestic coal had 22.7 million tonnes of coal, or 37 per cent of normative stock levels, with 72 plants classified as having critical levels of coal inventory.