Despite rise in coal production, coal stock at thermal power plants remain below norm

As power demand touches record high, coal stocks at thermal power plants are at 45 MT or 68 percent of the normative stock requirement
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Despite rise in coal production, coal stock at thermal power plants below normPSU WATCH
Summary
  • Coal stock at thermal power plants at 45 MT, when the normative stock requirement is 66 MT

  • The 45 MT figure includes 43 MT of domestic coal and 2 MT of coal imports

  • Demand for coal-based power has grown by 7.30% in this financial year y-o-y, which is the biggest increase on record so far

  • As on June 16, the cumulative coal production stands at 207.48 MT, reflecting a growth of 9.27%

New Delhi: As power demand touches record high, coal stocks at thermal power plants are at 45 Million Tonnes (MT), which is roughly 68 percent of the normative stock requirement of 66 MT. However, in comparison to the last year when coal stocks at thermal power plants had plummeted to 34.25 MT amidst an increase in power demand, the coal stock situation has improved by almost 32 percent, largely due to increased coal production.

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“The Ministry of Coal (MoC) is working tirelessly round the clock to ensure a consistent supply of coal to thermal power plants. As result of enhanced production, efficient management of logistics and smooth inter agency coordination, Ministry of Coal has ensured the highest ever stocks of Coal at thermal power plants. This proactive initiative aims to secure uninterrupted power for citizens nationwide during this peak demand period. Despite extremely high demand for power, the coal stocks at Thermal Power Plants remain robust, exceeding 45 million tonnes (MT) as on June 16, 2024, which is ~ 31.71 percent higher compared to the same period last year when it was 34.25 MT,” said the Ministry of Coal in a statement on Wednesday.

India’s peak power demand has breached 250 GW this summer, the highest-ever on record, with heatwave conditions prevailing across North India. India depends on coal to meet most of its power requirements, with thermal-based capacity meeting around 75 percent of the power demand.

Demand for coal-based power has grown by 7.30% in this fiscal

The Coal Ministry said that the demand for coal-based power has grown by 7.30 percent in this financial year compared to the corresponding period of the last year, which is the highest-ever demand of coal from power sector.

As on June 16, the cumulative coal production stands at 207.48 MT, reflecting a growth of 9.27 percent compared to the corresponding period last year, which was 189.87 MT. Coal India Limited (CIL) has recorded coal production of 160.25 MT, growing by 7.28 percent compared to the corresponding period last year, which stood at 149.38 MT. Similarly, coal production from captive and commercial mines reached 33 MT, with a growth of 27 percent compared to the corresponding period last year.

The cumulative coal dispatch stands at 220.31 MT as on June 16, with a growth of 7.65 percent compared to the corresponding period of the last year when the figure stood at 204.65 MT. Coal India Limited dispatched 166.58 MT coal, recording a growth of over 4 percent compared to the corresponding period last year when the figure was 158.91 MT. Coal dispatch from captive and commercial mines is recorded at 39.45 MT, with a growth of 30 percent. Dispatch to the power sector stands at 180.35 MT, reflecting a growth of 5.71 percent compared to 170.61 MT last year.

“This achievement is attributed to efficient logistical arrangements ensuring a smooth and adequate supply of coal. The Sub-Group, comprising representatives from the Ministry of Power, Ministry of Coal, Ministry of Railways, and power-generating companies has played a crucial role in maintaining an efficient supply chain,” said the Coal Ministry.

Overall coal stock in India at 144.68 MT

The overall coal stock in the country (mines, transit, power plants) is over 144.68 MT, ensuring a sufficient coal supply to the power sector. The Ministry of Railways has ensured 10 percent average growth in the daily availability of railway rakes, with an average of 428.40 rakes per day supplied daily as of June 16. The evacuation through coastal shipping has also experienced significant growth. Traditionally, coal was transported via Paradip port only, but now, under proper coordination, according to the coal logistics policy, coal is also being evacuated through Dhamra and Gangavaram ports. The infrastructural augmentation in the railway network has notably improved the movement of rakes from Son Nagar to Dadri, resulting in more than a 100 percent improvement in the turnaround time.

However, despite increase in coal production, thermal power plants are importing coal. The total coal stock of 45 MT includes domestic as well as imported coal and yet it is lower than the normative coal stock requirement mandated by the Central Electricity Authority (CEA). Currently, the domestic coal stock at thermal power plants is 43 MT, while imported coal for blending stands at 2 MT.

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“The Ministry of Coal is fully committed to ramp up coal production and transportation, ensuring power plants have ample reserves to meet the surge in electricity demand. These coordinated efforts have significantly contributed to maintaining a steady and efficient coal supply to meet the high power demand,” said the Coal Ministry.

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