PEKB Coal Block Production Delay Jeopardizes 9 Million Tonnes of Supply to Rajasthan in FY24

Rajasthan is on the verge of confronting a severe supply crisis in FY24, primarily due to a delay in the allocation of mining land within the Parsa East Kente Basin (PEKB) block by Chhattisgarh. The Central government has now intervened to ensure that critical coal stocks are provided to the desert state.

The delay in securing forest land for mining operations not only jeopardizes the supply of approximately 9 million tonnes (mt) of coal to Rajasthan's thermal power plants (TPPs) for the upcoming fiscal year but also places at risk investments totaling around ₹29,000 crore.

The repercussions of this delay are already manifesting as Rajasthan grapples with a power shortage. Coupled with the sweltering heat and humidity experienced in recent months and maintenance and technical issues at TPPs, the state government has been compelled to implement electricity rationing in certain instances.

The anticipated coal supply would have facilitated the generation of an estimated 4,300 MW of electricity at the TPPs. BusinessLine has engaged in discussions with both Central and State officials to gain insight into the current supply situation, highlighting the urgent need to address the impending crisis.

HBL