Coal In India

Short Notes From Brookings Report On Coal And Thermal Power In India

Currently the PLFs of the domestic coal based power plants in India are low, which implies lower profits, this has happened because India witnessed growth in supply of power plants at an unprecedented level between 2011 and 2016, the supply of power grew at 14.5% in the period. The PLFs dropped further due to the push of the 2014 elected government to increase power generation via Renewable Energy. More power dispatches started to happen from the RE sources which displaced conventional coal based power. Currently India has ~40 GW of idle power it has no PPAs signed with the DISCOMs or it is in the IBC-NCLT. These newer plants were built mostly by the private companies which are now stuck because they don’t have PPAs or FSA (Fuel Supply Agreements) from Coal India.

Why Coal Reforms Are So Important For The Indian Economy ?

The coal mining and coal-fired thermal power generation sectors are two of the core industries and together contribute ~10% to India’s Index of Industrial Production (IIP), affirming their importance to the economy. Further, India’s logistics industry, sponge iron industry, aluminium industry among several others, as on date, depend on India’s domestic coal industry.
Indian Power Sector

Indian Power Sector- Revival On Cards In 2019 ?

With the onset of election season in the current year plus the commitment of the government to provide electricity 24/7 to every household and the power demand rising by 6% every year, we have very few CAPEX announcements, and when all this is happening, we have over 40,000 MW of stressed power capacities either without PPAs or FSAs from coal India and also capacity without linkages to Natural gas.