Get 40% Off
⚠ Earnings Alert! Which stocks are poised to surge?
See the stocks on our ProPicks radar. These strategies gained 19.7% year-to-date.
Unlock full list

New Delhi chief minister warns of power crisis as coal stocks decline

Published 2021-10-09, 06:53 a/m
Updated 2021-10-09, 07:07 a/m
© Reuters. FILE PHOTO: Workers drill at an open cast coal field at Dhanbad district in the eastern Indian state of Jharkhand September 18, 2012. REUTERS/Ahmad Masood

NEW DELHI (Reuters) - The chief minister of New Delhi on Saturday warned of a looming power crisis in the Indian capital of 20 million people due to coal shortages, which have already triggered electricity cuts in some eastern and northern states.

Arvind Kejriwal said he had urged the federal government of Prime Minister Narendra Modi to allocate more coal and gas to power plants supplying the capital, as earlier in the week many of them had just enough coal stocks to last one day.

"Delhi could face a power crisis," Kejriwal said in a tweet. "I am personally keeping a close watch over the situation."

Prices of power-generation fuels are surging globally with industrial growth pushing up electricity demand, leading to a tightening of coal and liquefied natural gas supplies.

In India, over half of 135 coal-fired power plants, which supply around 70% of the country's electricity, have fuel stocks to last less than three days, Reuters reported on Friday.

In a letter to Modi shared on social media, Kejriwal said coal shortages had continued for three consecutive months, putting pressure on gas-fired power stations that also did not have adequate fuel.

The federal government has, however, assured the public that there is adequate amount of electricity available in the country.

© Reuters. FILE PHOTO: Workers drill at an open cast coal field at Dhanbad district in the eastern Indian state of Jharkhand September 18, 2012. REUTERS/Ahmad Masood

Demand for industrial power has surged in India after the second wave of the coronavirus pandemic, with increased economic activity driving up coal consumption in the world's second largest consumer of the commodity.

A widening price gap between lower domestic prices and record global prices has made imports of coal unattractive, leaving Indian utilities scrambling to secure supplies as inventories hit critically low levels.

Latest comments

Risk Disclosure: Trading in financial instruments and/or cryptocurrencies involves high risks including the risk of losing some, or all, of your investment amount, and may not be suitable for all investors. Prices of cryptocurrencies are extremely volatile and may be affected by external factors such as financial, regulatory or political events. Trading on margin increases the financial risks.
Before deciding to trade in financial instrument or cryptocurrencies you should be fully informed of the risks and costs associated with trading the financial markets, carefully consider your investment objectives, level of experience, and risk appetite, and seek professional advice where needed.
Fusion Media would like to remind you that the data contained in this website is not necessarily real-time nor accurate. The data and prices on the website are not necessarily provided by any market or exchange, but may be provided by market makers, and so prices may not be accurate and may differ from the actual price at any given market, meaning prices are indicative and not appropriate for trading purposes. Fusion Media and any provider of the data contained in this website will not accept liability for any loss or damage as a result of your trading, or your reliance on the information contained within this website.
It is prohibited to use, store, reproduce, display, modify, transmit or distribute the data contained in this website without the explicit prior written permission of Fusion Media and/or the data provider. All intellectual property rights are reserved by the providers and/or the exchange providing the data contained in this website.
Fusion Media may be compensated by the advertisers that appear on the website, based on your interaction with the advertisements or advertisers.
© 2007-2024 - Fusion Media Limited. All Rights Reserved.