‘Adequate supply, adequate backup’, says Tata Power amid coal shortage

Tata Power on Thursday stated that it has enough supply and adequate backup to ensure enough supply of power. It stated that it has diversified sources, which will ensure adequate backup and generate adequate supply.

“Tata Power supplies power to its customers in Mumbai by a combination of imported coal based plants at Trombay, Hydro plants near Mumbai and some renewable assets. Considering that it has diversified sources of supply by Tata Power, mostly from plants nearby to Mumbai, the guarantee of supply along with adequate quantity with adequate backup will be ensured,” stated the power company.

The power company’s statement comes amid reports of coal shortage in India, igniting fears of a power shortage in coming months. Reports stated that most power stations have back-up of only 3-4 days. This is against the government’s recommendation of at least two weeks’ worth of supplies.

WHAT LED TO INDIA’S COAL SHORTAGE

The demand for industrial power surged after the second COVID-19 pandemic wave. Moreover, the gap between domestic prices that are lower and global coal prices that are at a record, have led buyers to shun imports.

State-run Coal India, which produces over 80% of India's coal, on Wednesday said an increase in global coal prices and freight costs had led to a curtailment in power production by plants using imported coal, adding to the pressure on utilities using domestically mined coal to ramp up output.

Also read: Coal shortage, rising fuel prices may hit manufacturing activity: Economists