The coal ministry is looking to divert coal supplies from captive coal blocks to the power sector. Meanwhile, efforts are also being made by private players like JSW, Tata and Adani Talabira, Moitra and Jharia are some of the projects they have been leveraging

Owing to a surge in power demand coupled with a fall in coal imports, recently, there have been power cuts that lasted up to 14 hours per day, in many states. India is now planning to maintain strategic reserves of natural gas and imported coal to address such unforeseen events beforehand, said a senior official of the power ministry.

Furthermore, the ministry of coal has decided to divert coal supplies from captive coal blocks to the power sector. Among them are the NLC India’s Talabira II and III mines whose coal will be supplied to NTPC. Meanwhile, efforts are being pulled in by private companies like JSW, Tata and Adani Talabira, Moitra and Jharia are some of the coal mine projects that they have been leveraging.

Under usual circumstances, the increased use of coal would have been put off due to its environmental impact. However, the recent move by the government was the need of the hour as the non-renewable fuel accounts for more than 70 per cent of India’s electricity generation. In fact, on October 13, around 17 thermal power plants had zero days of coal stock with another 47 plants having around one or two days of coal inventory.

“To switch off that power source without an economical alternative in place would put hundreds of millions of people on an accelerated path to darkness and there are several nations in the same situation,” said Gautam Adani, chairman of the Adani Group at the JP Morgan India Investor Summit.

For players like Adani, Talabira, Parsa Kente and other mines they operate are an efficient way of meeting the power demand of the country. At the same time, they have been tapping into the renewable sources as well, to keep other sustainable alternatives open.

Following the first tranche of coal mine auction wherein 34 bids were placed for 19 out of 67 coal mines, the second tranche was launched earlier in September for a total of eleven coal mines. While these mines will continue to play a significant role in the country’s power sector going forward, under the aegis of players like Vedanta, Adhunik Power, Bharat Aluminium Company and Adani, Talabira, Madanpur South and other coal blocks will also be not far behind.