In light of the ongoing Coal crisis, with some states reporting steep power cuts, a social media post accompanying a news clip that reported private companies showing interest in taking over the electricity department of Chandigarh is being widely shared linking it to the current coal crisis. The post shared the clip claiming the current coal crisis is artificial and is done to privatise the electricity department, and to benefit a few industrialists. Through this article let’s fact-check the claim made in the post.
Claim: Current coal crisis artificial, done to privatise the electricity department – Newsclip related to privatising Chandigarh electricity department.
Fact: This is an old news clip, that dates back November 2020 and has nothing to do with the current ongoing coal crisis in India. There are multiple reasons for the ongoing coal crisis in the country. Revival of the economic activity, increase in international spot market coal prices, cash flow problems affecting the electricity sector, railways facing high passenger traffic, thus effecting the coal freight, etc. add up to the current crisis. However, it is not the first time country facing such issues. Even last year, India faced similar crisis and coped with it. Hence the claim made in the post is MISLEADING.
Currently, India is reeling under coal shortage, which in turn led to power crisis in several states. States like Gujarat, Rajasthan & Andhra Pradesh etc. have declared power holidays for industries. However, the current crisis has nothing do with alleged government’s intention to privatise the power sector, as claimed through the viral post.
Experts opined that multiple reasons like revival of the economic activity post COVID-19, increase in international spot market coal prices due to Russia-Ukraine conflict, cash flow problem affecting the electricity sector, railways facing high passenger traffic and thus effecting the coal freight, etc. add up to the current coal shortage which in turn led to the power crisis (here, here & here).
Speaking to media coal secretary A K Jain said ‘it is not a coal crisis but a power demand-supply mismatch. The power demand has registered an upswing as the economy has bounced back, summers have arrived early and the price of gas and imported coal have shot up sharply’.
Union power ministry held review meetings in this regard and asked all the stake holders to work hand in hand to over come the situation. Thus, it would be hypothetical to link the current coal shortage to privatisation of the sector.
Viral news clip :
This is an old news article, that dates back to November 2020. Google search with relevant keywords yielded us multiple news articles, which reported the same news back in 2020. As per these reports, Chandigarh administration has issued a tender to sell 100 percent stakes in the electricity department. Responding to this, 9 companies including Adani and Tata firms have expressed their interest to buy the power department (here, here & here).
However, as per the recent news articles, the process of privatising the Chandigarh power sector has come to standstill as the matter is currently pending in the court (here & here).
To sum it up, old news clip related to privatising Chandigarh electricity department is being shared linking it to the current coal crisis in the country.
