Coal news and updates

Coal Stock in India Increases by 39% Amid Power Demand Concerns

The stock of coal at mines and in transit has seen a significant increase of 39% compared to last year, according to the coal minister Pralhad Joshi. He stated that the state-owned company, Coal India Ltd, has witnessed a production growth of 12.8% in the July-September quarter, reaching 123.4 million tonnes. The first quarter of the fiscal year also saw a production of 175.5 million tonnes, showing a 9.8% increase compared to the same period last year.

Joshi highlighted that this record coal production and supply have led to sufficient coal stock during the monsoons. As a result, the coal stock at mine ends and in transit has shown a significant 39% increase compared to last year’s levels. Additionally, the Singareni Collieries Company Ltd (SCCL) has also witnessed a production growth of 12.4% in the July-September quarter, reaching 29.6 million tonnes.

Despite concerns over power demand reaching new highs, the minister expressed confidence that the growth momentum would be sustained, and coal stock would continue to increase in the coming months. The peak power demand recently reached a new record of 239.9 GW, surpassing the previous estimate of 230 GW by the Central Electricity Authority.

To address the shortage in domestic coal supply, the power ministry has directed coal-based power generating companies to blend 4% imported coal until March 2024. In August, there was a gap of approximately 200,000 tonnes per day between coal consumption and the receipt of domestic coal at these plants. However, the coal ministry assured that there is an adequate availability of coal for thermal plants and that coal dispatch to the power sector has grown by 5.8% to 324.50 million tonnes during the current financial year.

It is important to note that these updates on coal stock and production indicate a positive trajectory for maintaining sufficient coal supply amidst growing power demand in India.