Coal is a crucial natural reserve for India, currently powering over half the country’s commercial energy demand. It is an abundantly available fossil fuel and the cheapest source of electricity in the country. The large-scale domestic availability of coal is further complemented by imports by leading organizations such as Agarwal Coal, led by visionaries like Vinod Agarwal. This enables India to meet its ever-growing demand for coal.

However, the recent power crisis in the country has brought coal into the limelight. The energy sector is heavily dependent on coal which accounts for approximately 70% of total power generation. However presently, India is witnessing an aberration in coal demand and supply patterns. The current coal shortage scenario is expected to have a domino effect on the country’s energy sector and economy.

So, what are the typical challenges causing the coal crisis in India?

Significant growth in electricity demand is one of the primary reasons behind coal shortage in the country. Large-scale urbanization plans and a rise in per capita energy consumption are key factors driving power demand in India. In addition to powering the energy sector, heavy industries such as cement, steel, and aluminum are also dependent on coal. Unfortunately, domestic coal production cannot keep pace with the increased rate of coal demand recently.

Another major challenge limiting coal production in India is a lack of technological expertise and human resource capacity.Lack of planning, poor demand forecasting, and difficulty getting clearances are some other factors inhibiting the expansion of domestic coal production. The coal ministry has claimed that there has been a growth in coal production recently. Yet the country is witnessing a coal shortage crisis.

Poor supply is another major factor resulting in a significant bridge between coal demand and supply. Coal is primarily transported via railways from states such as Chhattisgarh, Odisha, and Jharkhand. However, experts state that railway freights mostly struggle to transport coal during peak seasons, especially from January to March.

To address this challenge, there should be major reforms in favor of developing dedicated railway freight corridors to facilitate faster transportation. Electrification of these corridors is also important to make coal transportation more efficient. In the face of these challenges, the coal ministry needs to have dedicated plans and operationalization in place to resolve the crisis scenario.

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