Power Crisis: Did the power crisis increase due to the improvement in the economy? The world will drown in darkness!

देश में कोयले की कमी से 'ब्लैकआउट' का खतरा गहराया, इन राज्यों में छा सकता है 'अंधेरा'!

The demand for imported coal from both China and India has increased, due to which the rate is skyrocketing.

Power Crisis: Along with the world, the coal crisis in India is getting serious. Along with this, dues of power generation companies to electricity distribution companies are also increasing. Dues of power generation companies (GenCo) to power distribution companies (DISCOMs) rose by 3.3 per cent to Rs 1,16,127 crore in October on a year-on-year basis from a year ago. As of October, 2020, the dues of power distribution companies on discoms stood at Rs 1,12,384 crore. This information has been received from the Payment Ratification and Analysis in Power Procurement for Bringing Transparency in Invoicing of Generation (PRAAPTI) portal.

Before the problem of Discom and Genco let us understand in detail about Coal Crisis. This question must be arising in your mind that what happened that suddenly the coal crisis has become so serious. In fact, after the second wave of Corona, there has been a tremendous jump in manufacturing activity. Power demand has also increased significantly due to the increase in manufacturing activity. Nitin Bansal, Associate Director, India Ratings, says that no one expected that industrial demand would recover so rapidly after the Corona epidemic.

That’s why power companies did not pay attention to inventory

This is the reason why power companies did not pay much attention to inventory, and are now troubled by lack of stock. The Federation of Indian Mineral Industry has clearly told the coal ministry that the aluminum and steel industry is facing huge problems due to the coal crisis. According to the CNBC report, 90 coal power plants have only 5 days of stock left. On October 8, there was a reduction in power generation of 8942 MW. According to the rules, if the stock of coal with a power plant decreases within 7-3 days, then it is considered as a critical and supercritical situation. According to the report of the Central Electricity Authority (CEA), 110 power plants are at the critical level. Is.

Both China and India increased imports, due to which the price increased

India also imports coal on a large scale. The problem with imported coal is that the economy of neighboring China has also emerged from the Corona crisis. There has also been an increase in industrial activity, due to which the demand for coal has increased. On the other hand, the Jinping government has tightened the rules regarding the production of coal keeping in mind the pollution. In such a situation, the power companies there are also importing coal on a large scale, due to which the global demand has increased and the price has increased.

Rates will continue to rise in the international market

In such a situation, it is clear that both China and India will import coal from the international market. This will increase the demand, increase the competition and accordingly the rates will also increase. Power Minister Raj Kumar Singh has clearly said in an interview to The Indian Express that the problem of coal crisis in India will continue for the next six months.

Water reached the mines due to excessive rain

Talking about domestic production and supply, power crisis has deepened in many states, including Delhi and Punjab, due to the impact of coal movement due to excessive rainfall in many areas of the country. The country has recorded record production of coal this year, but excessive rainfall has affected the movement of fuel from coal mines to power generation units. It has had a profound impact on power generation in many states including Gujarat, Punjab, Rajasthan, Delhi and Tamil Nadu. Power supply has also been affected in Punjab, Rajasthan, Tamil Nadu, Jharkhand, Bihar and Andhra Pradesh due to the coal crisis.

Sufficient stock of coal, but trouble to reach the power plant

On the other hand, the Ministry of Coal says that there is sufficient coal reserves in the country and the goods are being replenished continuously. A top coal ministry official said, “There are reserves of about 40 million tonnes in mines and 7.5 million tonnes in power plants. Transportation of coal from mines to power plants has been a problem as the mines have been flooded due to excessive rains. But now it is being dealt with and the supply of coal to power plants is increasing.”

1.12 lakh crore outstanding on discoms in September

Now if we look at the financial condition of the power generating companies, in October, the dues of GENCO to the discoms have increased as compared to September. It stood at Rs 1,12,815 crore in September. PRAPTI Portal (PRAAPTI) was launched in May, 2018 to bring transparency in power purchase transactions between power producers and DISCOMs. The total outstanding amount on the discoms was Rs 97,481 crore even after the grace period of 45 days till October 2021. It was Rs 97,811 crore a year ago. According to the latest data from the portal, the total outstanding dues on discoms stood at Rs 96,316 crore in September.

Discom has to make payment within 45 days

The power generating companies give 45 days to the discoms to pay the electricity bills sold. After that this amount comes in the old arrears. In most such cases, power producers charge penal interest. For the relief to the power generating companies, the Center has implemented payment security system from August 1, 2019. Under this arrangement, the discom has to give a letter of credit to get the power supply.

1.2 lakh crore package for discoms

The central government has also given some relief to the power distribution companies. Penal charges were waived for delay in payment to discoms due to the COVID-19 pandemic. In May 2020, the government had introduced a cash infusion scheme of Rs 90,000 crore for discoms. Under this, power distribution companies can take cheap loans from Power Finance Corporation and REC Limited. Later the government increased this package to Rs 1.2 lakh crore and after that to Rs 1.35 lakh crore.

Discoms of these states have the highest dues

The data shows that the distribution companies of Rajasthan, Uttar Pradesh, Jammu and Kashmir, Telangana, Andhra Pradesh, Karnataka, Madhya Pradesh, Maharashtra, Jharkhand and Tamil Nadu account for the largest share of dues to the generating companies. The total outstanding dues on the discoms as on October 2021, after the end of the payment period, was Rs 97,481 crore. In this, the share of independent power producers is 53.25 percent. At the same time, the dues of GENCO of the Central Public Sector Undertaking is 26.69 percent.

How much dues of private power producers

Among the public sector undertakings, NLCs alone have to recover Rs 5,047.45 crore from discoms. NTPC owes Rs 3,974.25 crore, Damodar Valley Corporation Rs 2,261.22 crore. Among private power producers, Adani Power owes Rs 25,717.97 crore, Bajaj Group’s Lalitpur Power Generation Company Rs 3,645.56 crore. At the same time, dues of non-conventional energy sources such as solar and wind energy companies are Rs 17,010.44 crore.

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Shehnaz Ali
Shehnaz is a Corporate Communications Expert by profession and writer by Passion. She has experience of many years in the same. Her educational background in Mass communication has given her a broad base from which to approach many topics. She enjoys writing about Public relations, Corporate communications, travel, entrepreneurship, insurance, and finance among others.

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