Coal in India
The 2021 Coal Shortage Scare
In late 2021, low stocks at power plants caused fears of blackouts, showing how coal supply issues can affect the whole economy.
A close call.
Causes
Strong post-Covid demand, heavy rain flooding mines and high global coal prices.
Impact
Many plants had only a few days of stock.
Response
The government raised production and prioritised rail rakes to plants.
Lesson
Buffers, logistics and forecasting matter.
A low stock alert
A plant with two days of coal left is placed on a critical list.
Assuming supply always meets demand
Shocks can occur.
Key takeaways
- Stocks fell in 2021.
- Rain and prices contributed.
- Output and rail were prioritised.
- Buffers help.
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