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Coal Demand and Supply Gap, a Prolonged Problem

With the increase in temperature electricity demand is bound to increase and India still largely depends on thermal power production to meet its energy needs and with less coal supply to the power plants, power production will take a hit. With less supply, plants will not be able to function to their maximum capacity which will hurt their balance sheet and DISCOM’s might need to purchase spot electricity at higher prices, which might deteriorate their financials. DISCOM’s might resort to power shedding to cover up their losses. Govt needs to fasten the process of road transportation and assign ore railway rakes. Govt needs to make it a mandate for the plants to stock up coal as required to avoid a catastrophe.