Coal inventories at India’s imported coal-based power plants, collectively possessing a capacity of 17.9 gigawatts (GW), have plummeted to just 47% of the normative level, totalling 2.28 million tonnes as of June 28, according to data from the Central Electricity Authority. Furthermore, a total of 184 thermal power plants in the country, both domestic and imported coal-based, with an overall capacity of 211 GW, are operating with coal stocks at merely 66% of the normative level, equating to 46.8 million tonnes.
This significant shortfall in coal stock comes amidst rising power demand and concerns about supply constraints exacerbated by the monsoon season. The government is apprehensive about reduced coal deliveries to thermal plants due to logistical challenges during the monsoon. The Ministry of Railways has indicated that the availability of rakes for coal transportation in the second quarter of the current fiscal year is projected to decline to 403 rakes per day from 432 rakes per day in the first quarter of FY25, primarily due to various supply disruptions during the monsoon. In a proactive measure to ensure sufficient coal reserves at thermal power plants, the government has mandated all domestic coal-based plants to continue blending imported coal at a rate of 4% until October 15. “In order to meet the power demand during the crucial monsoon months and to ensure uninterrupted power supply across the country, adequate coal reserves in domestic coal-based plants (DCBs) need to be maintained by all the central and state GENCOs and IPPs (independent power producers),” the government stated. Despite an improvement in the domestic availability of coal this fiscal year, there remains a gap between the receipt and consumption of the dry fuel, currently standing at 130,000 tonnes per day in domestic coal-based plants.
As of June 16, India’s coal production was recorded at 207.48 million tonnes, marking a growth of 9.27% compared to the same period last year, which saw 189.87 million tonnes produced. According to S&P Global Commodities at Sea, India has imported approximately 85 million tonnes of thermal coal so far in 2024. The country’s total coal imports reached 265 million tonnes in FY24, up from 238 million tonnes in FY23, based on official data. For FY25, the power sector has requested 874 million tonnes of coal from the Ministry of Coal to supply its thermal power plants and meet the escalating power demand. The demand in FY24 was 821 million tonnes. The Ministry of Power has projected that peak power demand will reach 260 GW during the summer. In September last year, peak demand touched 243 GW. According to ICRA, the country witnessed an 11% increase in power demand in the first quarter of the current financial year 2024-25 due to extreme temperatures and a favourable base. In May, peak power demand surged to 250 GW, compared to 221.42 GW in the same period last year, as per CEA data. As of May, India’s total installed power generation capacity stood at 444.7 GW, comprising 242.9 GW of cumulative thermal capacity, 193.6 GW of renewables, and 8.1 GW of nuclear capacity.
