Coal demand to exceed domestic supply

The Centre has projected that the overall coal demand will outstrip the domestic supply in the current financial year.

The development assumes significance in the wake of certain parts of the country grappling with power outages in the wake of a shortage of coal.

While the overall coal demand in FY2022-23 is expected to be 1,029 million tonnes (MT), the domestic supply of fossil fuel is estimated to be 974 MT, according to the latest medium-term projections of dry fuel by the coal ministry.

Of the overall demand in the current fiscal, the power sector accounts for the major chunk of 735 MT and the remaining 294 MT by the non-power sector.

However, the estimated domestic supply of coal at 1,304 MT is expected to exceed the overall coal demand of1,134 MT in the next financial year.

In FY’28 the overall demand for dry fuel is likely to be 1,313 MT and the domestic supply is projected at 1,456 MT.