Government orders tripling of coal stocks to prevent power cuts in summer

The Government of India has instructed coal producers and the Railways to triple the coal stocks at power stations to prevent the problem of power cuts during the upcoming summer. This is an ambitious target aimed at addressing energy shortages, although it is also likely to increase tension with other users.

According to reports by Business Standard and Businessline, the Ministries of Coal, Power, and Railways have jointly set this target. Currently, the coal stock in power plants stands at 18 million tonnes, with a goal to increase it to at least 55 million tonnes by the end of the financial year, i.e., by March.

According to people familiar with the matter, if this target is achieved, it will be almost equal to the reserve stock held during this period of the year. As these discussions are private, the informants requested to remain anonymous.

Over the last few months, the impact of coal shortages has been observed across the entire economy. This shortage has led to power cuts in several places and has also resulted in an increase in energy costs.

When the country's largest producer, Coal India Limited, as well as the Ministries of Power and Railways, were contacted regarding this important decision, they did not provide any immediate response.