Chennai: India is considering maintaining the strategic reserves of natural gas and coal imported to overcome the supply shock in the future, said senior officials of the Ministry of Power on Thursday, because the energy Hungry energy fights with crippling coal deficiencies.
The surge in power demand combined with a decrease in imports due to high global coal prices has led to disruption of supply and power outages to 14 hours a day despite the supply record of the state-run coal, the largest coal miner in the world.
Alok Kumar, Indian Power Secretary, said countries are increasingly meeting their own needs first when there is a supply crunch, quoting Russian examples limiting supplies to European countries because they want more gas.
“So, let’s start thinking and discussing about maintaining gas reserves and coal imported strategically, so that the economy can plug in this supply shock for about a month or more,” Kumar said at the South Asia Power Summit held by the Indian Industrial Confederation.
Most of the 135 Indian coal power plants have fuel stocks for less than three days.
Coal accounts for more than 70% of Indian power plants.
India, the second largest coal importer in the world with the fourth largest reserve in the world, must also compete for supplies with China, which is also under pressure to increase imports in the midst of a severe electrical crisis.
“High prices will make energy security very challenging if we don’t have a well-thought strategy,” Kumar said.
Not immediately clear if the potential strategic backup will mainly for power plants or will also address coal demand from consumers such as steel plants and aluminum smelters.
India with an average importing nearly 21 million tons of thermal coal every month before the Pandemic Coronavirus, where the electricity sector directly accounts for around 6 million tons.
This country mainly imports coal from Indonesia, Australia and South Africa.
Carmichael mine belonging to the company in India in India in Australia said it was on its track to export its first coal in 2021.