Poor demand, fall in energy intensity choking coal
If the annual addition of thermal power capacity over the last few years is any indication, coal seems to be losing its mojo.
In 2018-19, the country added only a fourth of the capacity it did in 2015-16. Capacity addition for the year fell short of the target (of 7,266 MW) by a good 20 per cent. And, by all counts, this trend is likely to continue in the near future.
The trend is hardly surprising. Given that existing coal-based power projects are running at less than 65 per cent of their capacity, there are bound to be few takers for new ones.
