The Indian government has intervened to supply essential coal stocks to Rajasthan as the state faces a severe coal shortage in FY24. This crisis results from a delay in the allocation of mining land in the Parsa East Kente Basin (PEKB) block in Chhattisgarh. This delay not only threatens the supply of approximately 9 million tonnes of coal to Rajasthan's thermal power plants (TPPs) but also puts investments of about ₹29,000 crore at risk.

The coal shortage has led to power deficits in the state. Combined with extreme heat and humidity in recent months and maintenance and technical problems at TPPs, this situation has forced the state government to ration electricity in some cases. The coal supply is essential for generating 4,300 MW of electricity at the TPPs.

The PEKB block, allocated to Rajasthan Rajya Vidyut Utpadan Nigam (RRVUNL), is located in Chhattisgarh's Surguja and Surajpur districts. Delays in obtaining the necessary land for mining operations have hampered coal production. While tree felling was completed on 43.63 hectares, 91.21 hectares still need to be handed over by Chhattisgarh. If tree felling is not carried out promptly, it could lead to an estimated loss of around 9 million tonnes of coal production in FY24.

Rajasthan's Chief Minister has been continuously raising the issue with his Chhattisgarh counterpart and the central government. Despite repeated requests, the delay has continued. Rajasthan relies on the power generated from the PEKB coal block for its peak tourist season from September to March. Power cuts negatively impact tourism and increase costs for businesses that must rely on generators. Additionally, regions with significant tourism activity are home to various medium and small-scale industries, which are also affected by the power shortages.

Rajasthan's RRVUNL operates thermal power plants with a cumulative capacity of 7,580 MW, of which approximately 4,340 MW depends on the PEKB coal block, including TPPs in Suratgarh, Chhabra, and Kalisindh. The state has recently faced a peak demand of around 16,000 MW, with a deficit of 2,000 MW in August 2023, partly due to maintenance shutdowns and technical issues at some generating units. The average daily power consumption has exceeded 340 million units.