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HomeManufacturing and Production NewsCaptive mines given seven days to increase coal output

Captive mines given seven days to increase coal output

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 seven days for the “captive” coal mines in the country to ramp up their production in order to tackle the situation. Captive mines are those owned by industrial companies which produce coal solely for this own use. In a statement issued on Monday, the federal power ministry demanded them to increase their output to above 85 per cent of existing targets. On the other hand, despite the overall policy to reduce import dependence, New Delhi also requested for an increase in procurement by utilities companies which buy power from plants running on imported coal.

The South Asian nation is currently the second-largest coal importer in the world, with the fossil fuel generating nearly 75 per cent of the country’s electricity needs. Nevertheless, with the aim of addressing the crisis, hydro power plants in the country have also been instructed by the Federal Power Minister R.K. Singh to suspend any planned maintenance shutdowns this month, as well as in October, and to explore the possibility of increasing the operation of gas-fired power plants when electricity demand peaks. 

Although the current crisis is believed to be a result of the increase in power demand amid easing of pandemic-related restrictions, coal shortages do occur periodically in India, with the last such shortage occurring back in 2017. 

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