Industry Odisha Bureau, Sep 22: Coal stocks are tightening across Indian power plants. Nearly 38% of domestic coal-based units held critical inventories by September 20, as rain disrupted mining even amid rising power demand.
Coal inventories at Indian power plants have thinned sharply. Almost 38% of domestic coal-based plants held critical stocks on September 20. Rising electricity demand has strained an already stretched supply chain.
Coal Stocks Tighten Across Power Plants
India has 175 domestic coal-based plants tracked by the National Power Portal. Their combined installed capacity stands at 206.75 GW. Critical stocks mean holdings below 25% of normative requirements. The number of critical plants rose to 65 from 60. That increase reflects mounting pressure on coal inventories nationwide.
Imported Coal Plants Face Similar Pressure
Imported coal-based plants have not escaped the squeeze either. India has 15 such plants with combined capacity of 17.77 GW. Eight of these plants fell into the critical-stock category. That number rose from five plants earlier. Domestic and imported coal-based generators face comparable inventory pressures.
Rains Disrupt Mining and Coal Movement
Prolonged rainfall across the eastern coal belt disrupted mining operations. It also hampered coal evacuation from mining regions. Between April and August, rake loading grew only around 5%. Coal receipts increased just 3% during the same period. Consumption, meanwhile, rose faster than both transportation metrics. This mismatch prevented adequate inventory replenishment at power plants.
Power Demand Accelerates Coal Consumption
Thermal plants consumed approximately 395 million tonnes between April and August. That represented an 8% year-on-year increase, according to Crisil Intelligence. Power demand itself rose around 9.5% during the period. An unusually hot summer contributed to this demand surge. A below-normal South-West monsoon also played a role. Cumulative June-August rainfall was 13% below the Long-Period Average.
Coal India Expands Transport Options
Coal India responded by easing transportation constraints from September 7. Eligible plants with fuel supply agreements gained road-transport flexibility. This supplements existing rail-based coal movement. Crisil Intelligence described the measure as an additional supply channel. It does not by itself guarantee immediate inventory recovery.
Fuel Buffers Remain Important
Coal stocks function as operational buffers for continuous generation. DCB plants held 35.13 million tonnes at July-end. That figure fell steadily to 21.23 million tonnes by September 15. Imported coal-based plants saw a comparable declining trajectory. The interplay between mining, transportation and demand remains closely watched. Coal India’s expanded transport measures aim to ease that pressure gradually.
