India building coal stocks for summer
The government is preparing to build up India’s coal stocks to meet high demand for power in the April-June period in 2024, as summer arrives in an election year.
Overall coal stocks, including stock at pithead, thermal plants and in transit, would be almost 9% higher at 125 million tonnes on 1 April 2024, compared to 115 million tonnes on 1 April 2023, coal secretary Amrit Lal Meena said in an interview.
“During the period starting January to 15 March, the stock increases. From mid-March, with the rise in temperatures, the decline in stocks start,” he said. As of 26 December, the total coal stock stood at around 91.5 million tonne.
Meena also said that the stock only at plants would reach 40 million tonnes by the end of this fiscal, which would be almost 18% higher than the stock of 34 million tonne at the same time last fiscal. Currently, coal stock at plants stands at over 31 million tonnes, which is adequate for 15 days, he added.
“Despite high consumption and increase in power demand, the country will be in a comfortable position in terms of coal availability,” the secretary said.
The outlook for increase in coal stock gains significance as the power demand is expected to continue at elevated levels and touch record peak demand next fiscal. Projections by the Central Electricity Authority (CEA) estimate that the peak power demand may
touch a new high of 256 GW in 2024-25. This year, peak power demand touched 239.9 GW on 1 September, the highest ever.
On anticipation of this rising demand, the power ministry has directed domestic coalbased (DCB) power plants to continue blending 10% imported coal till March 2024. It has also mandated imported coal-based (ICB) plants to operate at full capacity till June.
The directives were first given in January 2023 with effect till September, anticipating a surge in demand during the April-June period as the country had witnessed a crisis during these months in the previous year. The power ministry has since extended the mandates, citing lack of availability of domestic coal and estimation of high demand.
Meanwhile, state-run coal companies have also stepped up production. According to a coal ministry statement released on Tuesday, cumulative coal production has touched 684.31 million tonne this fiscal, 12.47% higher than the 608.34 million tonne produced in the same period last fiscal. The government intends to take the production level above the 1 billion tonne mark this fiscal.
The secretary further said that logistical issues are easing and rake availability for transport of coal has increased around 11% in the current financial year, leading to lower import of coal for blending. So far in FY24, 17.2 million tonnes coal has been imported, against 25.63 million tonnes in the corresponding period of last fiscal.
Currently, coal stock at plants stands at over 31 million tonne, which is adequate for 15 days