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Coal Crisis: Govt's reasoning as to why this is happening

  • Amidst rising concerns of the coal shortages and therefore, a possible blackout in many states, the Centre is holding different meetings to navigate and thereof, mitigate the threat.

  • On Tuesday, PK Mishra, principal secretary to the Prime Minister, held a meeting with coal secretary Anil Kumar Jain, power secretary Alok Kumar, and railway board chairman Suneet Sharma to discuss the issue.

  • As the threat of power cuts looms, the Centre has given the following reasons as to why is this happening:

  1. Heavy rainfall, especially in the coal-producing regions of Jharkhand, Odisha and West Bengal in September, added to the problem.

  2. The shooting prices of imported coal also contributed to the current situation. There is a 12 per cent fall in imports of foreign coal which power companies blend to cut losses. Due to high prices, they also shifted to domestic coal.

  3. There is also the issue of pending dues - some state governments have defaulted on payments to Coal India, as news reports have stated.

  4. The Centre also accuses the states of not paying heed to the notices/letters of the Coal ministry to stock coal.