Coal news and updates

Coal shortage looms as Railways runs short of rakes

The government expects a touch-and-go situation in terms of availability of coal to power stations in the coming summer and rainy seasons even as all departments are fighting odds to prevent a crisis similar to August last year.

In a recent meeting chaired by cabinet secretary Rajiv Gauba, Indian Railways admitted that it has exhausted its rake availability capacity, people aware of the matter told ET.

Coal India and the railways are operating at record levels to ensure adequate inventory build-up at power plants, they said.

"Indian Railways has admitted that it is exhausted and has no more spare capacity," a senior government official said. "It has said it can improve its capacity each month with the addition of new rakes supplied by BHEL. Overall situation remains critical."