Editorial: A Summer of Discontent

India is staring at a merciless summer with severe heat wave conditions gripping vast areas across the country. As predicted by the Indian Meteorological Department (IMD), the mercury is likely to climb to unprecedented levels and impact life adversely, particularly in the Indo-Gangetic plains. Delhi recorded temperatures as high as 45 degree Celsius in mid-April, something unheard of previously. April this year was rated the hottest since 1951.

As is well known, summers spell misery. But the straws in the wind suggest that Summer-2022 will outdo previous ones in terms of distress. Power production is mainly dependent on coal-fired thermal plants which are working at just around 40 per cent of the capacity at the nationally aggregated level. Even in normal circumstances, power plants operate 10 to 12 per cent below their capacity due to ongoing maintenance work. But disaggregated at the state level, the situation is much more worrisome. It is pointed out that against the daily demand of 22,000 tons of coal, only 16,000 tons of coal is being supplied. Power Ministry figures suggest that power plants in the country have 31% of the normative of stocks which are depleting at faster than normal level as demand has shot up by 50%. Except the states which have coal mines, all other states have coal stocks lower than 40% of their requirement.

It is pointed out that of 173 power plants, 106 plants have less than 25% of their usual coal reserves. States like UP, Punjab, Haryana, Rajasthan, Madhya Pradesh and Andhra Pradesh are reporting eight to ten hours of unannounced power cuts. Rural areas have power supply only for four hours. Delhi and Punjab are left with coal stocks for just a week. The Railways has announced cancellation of several passenger trains to move goods trains with coal wagons. Industries are under pressure to cut down production as power situation is not likely to get any better in near future. Moreover, benchmark prices of coal have risen by 50% between mid-March and mid-April. The situation is compounded by low generation at gas-operated plants on account of 300% increase in gas prices over the past six months.

Evidently, mismanagement has to be blamed for the current power crisis. Failure to build up coal supplies in time has led to the deficient coal stocks and lower production by power plants. It is also pointed out that default and delays in payment by the States to Coal India have considerably contributed to the situation. State power corporations are notoriously lax in lifting their allocated coal stock in time. They in turn shift the blame to discoms which instead of buying power they need, resort to load-shedding thereby passing on the misery to consumers. In some cases, payments are due to the Indian Railways which moves coal from mines to the plants.

It is a vicious circle where blame cannot be pinned on a single source. It is imperative that the Centre ensures efficient coordination among power plants, power boards, Coal India and the Indian Railways to see that the crisis does not recur.