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India is the last country to face a major power crisis that threatens to be cured by the epidemic, with government officials warning that power stations will run out of coal.
According to India’s Ministry of Energy, 135 third-party power plants in Asia had only four days on coal from Friday, starting 13 days in early August. Of the crops that are monitored daily, more than half own shares for less than three days.
Power shortages have already wreaked havoc on neighboring China, with last month’s manufacturing sector plummeting since the outbreak began. Beijing ordered State-owned energy companies to conserve oil and fossil fuels in order to curb the winter slowdown, and help raise prices for other countries, including India.
“People [Indian] the electrical part meets the type of a perfect storm, “Said Aurodeep Nandi, India’s finance minister at Nomura Financial Advisory and Securities.”
India’s power plant has reduced coal purchases in recent months, while global prices have risen due to significant global demand, from Europe and China. The government of Prime Minister Narendra Modi has also promoted Indian policies financial independence as a guide for their recovery from the plague.
However, India’s cheap coal prices – about 80% of its revenue come from the large, non-governmental business of Coal India Ltd, have failed to keep pace with the growing demand for domestic goods.
The energy ministry said over the weekend that September’s heavy rains in coal mines were affected by the production and shipping of coal, while crops failed to produce their shares before the rainy season. It advises power companies to keep the reservoir, in anticipation that key groups can be “in the meantime”.
This shortfall now raises the prospect of a coming, great cutting power, rising electricity prices, or the impact of electricity generation, on the economy where the fire industry is now about 66% electricity, starting at 62 percent in 2019.
“Basically, we’ve been thinking a lot about laser he wants to recover from the epidemic – which has been at an all-time high – that all sales related issues did not appear until they started biting, ”said Nandi.
India’s power consumption in August and September skyrocketed to 124.2bn units, from 106bn units in the same two months in 2019, while the collapse of the Covid-19 cases – as well as the rise in prices – prompted many Indians to resume their operations.
However, coal from Indonesia, one of India’s largest suppliers, rose from $ 60 / ton in March to $ 200 / ton in September, which is disappointing for overseas purchases.
While India has been keen to reduce its dependence on imported coal, which has been instrumental in the slowdown in trade, Nandi said New Delhi urgently needed to help Coal India to boost production or power producers should upgrade their products, regardless of price.
“If the government does not promote production or if imports are not increased, there will be power cuts,” he said.