Tuesday, 02 January 2024 12:17 GMT

Coal Miners Ramp Up Supplies As Power Plants Face Low Stocks


(MENAFN- Live Mint) India is stepping up coal supplies to thermal power plants as inventories at dozens of stations fall to low levels, with state-run producers loading 444 railway rakes for the power sector on Sunday.

The increase comes as 58 thermal power plants have coal stocks below 25% of the required coal stock, prompting the coal ministry to closely monitor the plants and put corrective supply measures in place. The number of plants with critical stocks rose from 45 at the beginning of September, according to data from the Central Electricity Authority.

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"Coal loading to the power sector has shown a consistent upward trend over the past four days, rising from 370 rakes on 03.09.2026 to 444 rakes on 06.09.2026, a net addition of 74 rakes/day, including a single-day improvement of 31 rakes on 06.09.2026 alone. This reflects the sustained efforts of Coal India Limited (CIL), its subsidiaries, SCCL and captive mine operators to ramp up coal supply to the power sector."

The increase in coal supplies comes as India's power deficit has remained elevated in recent days, with shortages particularly pronounced in the northern and western regions, according to Grid Controller of India data. The deficit stood at 20.06 million units on Sunday, while it crossed 27 million units on 4 September.

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Higher electricity demand has put additional pressure on the power system this year. Weaker monsoon rains have increased the use of irrigation pumps in farm regions, while hotter conditions have supported greater demand for air-conditioning.

Coal output, dispatch rise

The coal ministry said the improvement in supplies reflects efforts by Coal India Ltd.'s subsidiaries, and captive mine operators to increase deliveries to the power sector.

Coal India has also seen a pickup in production as rainfall receded across its mining regions, the ministry said. Average daily production by state-run coal miners rose about 35% to 1.83 million tonnes on 6 September from about 1.36 million tonnes during the first three days of the month.

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The improvement in production is translating into higher dispatches. Average daily coal dispatches to the power sector rose about 24% to 1.7 million tonnes on 6 September from 1.37 million tonnes during the first three days of September, according to the ministry.

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