The government may want to pass on the blame for poor coal mining efficiency to Coal India. It can even accuse the private sector companies of misusing their coal block allocations meant for captive power plants. But the fact remains that high cost and irregular supply of power has forced Indian companies to rely on captive power supplies. And that is the reason companies have tried every means of laying their hands on captive coal blocks. It is not just industrial but also retail supply of power that has been in a shoddy state over the past decade. Despite the increase in power generation capacities the per capita consumption of electricity in India remains abysmally low. And if the ambitious ultra mega power projects (UMPPs) do not get access to cheap coal or become financially unviable, India's power problems are here to stay.
Source: Ministry of Power
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