Coal Crisis: Facility & Property Management Impact
A short read on Coal Crisis in India and its likely impact on Property & Facility management
Data Speak
On 5 Oct 2021 the Central Electricity Authority of India reported that 106/135 (80%) Thermal Plants in India that use coal for power generation, had stocks left only for the next 6–7days and were in either Critical or Supercritical stage of supply shortage. This data report had created an enormous amount of trepidation amongst the masses and attributed to a bewildering situation across the country.
Situation Analysis
Not withholding a probable power crisis, the Chief Ministers of 8 States have requested the Central government to increase coal supply to their states. Meanwhile, the Union Power Minister assured that there was no reason to worry, because the supply is being maintained steadily as well as there are multiple alternative sources of power generation, and that an “unnecessary panic” was being created around the issue.
What lead to the situation?
The report on critical coal shortage, by the Central Electricity Authority of India lead to a decision disquietude amongst various state governments. Some states imposed rolling power cuts known as load-shedding and began selling power at higher prices to energy exchanges. This prompted the Central government (Power Ministry) to intervene and order respective states that If states are not serving their customers but are “selling power in the power exchanges at a higher rate, the unallocated power of such states shall be withdrawn and allocated to other needy states.”
States that have flagged a crisis are Delhi, Maharashtra, Kerala, Punjab, Rajasthan, Andhra Pradesh, Bihar, and Tamil Nadu. About 70% of India’s electricity generation comes from coal out of which about 30% of coal is mined domestically.
The crisis is also a result of adverse and immense rains that are affecting the logistics and movement of coal from mines to power generation units.
Latest Developments
The Coal Minister, Pralhad Joshi said that the country has 22 days of Coal stock and the supply is rising fast. He also assured that all coal requirements will be made available, at priority. Government sources have stated that the Prime Minister is expected to personally monitor the situation and ascertain decisions to enable a long-term solution and ease the current crisis.
Impact on Property and Facility Management
With most organizations working from home, it should be noted that if a large or imperative chunk of personnel who working from home are currently residing in those 8 States (Delhi, Maharashtra, Kerala, Punjab, Rajasthan, Andhra Pradesh, Bihar, and Tamil Nadu) that have flagged power crisis, the likelihood of the power crisis impacting organizational operations is high.
From a Property management stand point, especially if your property happens to be in affected areas, planned load-shedding and consumption allocation for tenant operations as well as common area power distribution to meet the anticipated shortage will strengthen your electricity consumption pattern as well as avert any BCP kind of uncertainty. Property managers should inevitably have a constant connect with local municipal and power distribution bodies in order to have an edge over the situation.
Similarly, from a Facility Management perspective electricity consumption planning for workstations and specific critical areas such as Server and Hub Rooms has to be intact in a way that in the event of a sudden drop of supply, business significant units remain unscathed.
All being said, with continuous assurances from the Central Government and the steady rise in the coal supply, it is unlikely that there would be a situation which could impact organizational operations or effectiveness.
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