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India’s Coal Stocks Bolstered for Smooth Power Generation During Monsoon Season

03 July 20243 mins read by Angel One
India holds sufficient coal stocks at domestic coal-based Thermal Power Plants to meet requirements of 18.5 Days at the present level of consumption.
India’s Coal Stocks Bolstered for Smooth Power Generation During Monsoon Season
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The Ministry of Coal has taken proactive measures to ensure adequate coal supplies for India’s domestic coal-based Thermal Power Plants (TPPs) during the upcoming monsoon season. As of June 29, 2024, coal stocks at these TPPs stand at a robust 44.46 Million Tonnes (MT), translating to 18.5 days’ worth of fuel at current consumption levels. This represents a significant 33% increase compared to coal stockpiles at the same time last year.

Strong Production and Supply Growth

These improved stock levels are attributed to a combination of factors. India’s coal production witnessed a healthy growth of 10.58% during the first quarter of FY25, while coal supply also saw an increase of 8.50%. This concerted effort to bolster domestic coal production and supply bodes well for meeting the nation’s energy demands during the monsoon months when coal mining activities can be hampered by heavy rainfall.

Strategic Stockpiling at Mine Pits

Anticipating the monsoon’s potential impact, the Coal Ministry has strategically stockpiled 98.67 MT of coal at mine pitheads (including coal in transit) as of June 30, 2024. This figure marks a commendable 33.5% increase over stockpiles at the same time last year. This initiative ensures a readily available reserve to supplement coal supplies to TPPs during the monsoon season.

Meeting Normative Requirements and Maintaining Steady Supply

The current coal stock availability at TPPs fulfils 68% of the normative requirement, a significant improvement from around 50% during the same period in 2023. Furthermore, there was no scarcity of coal at domestic TPPs throughout FY23-24, highlighting the success of the Coal Ministry’s strategies. The Ministry aims to maintain consistently high coal stock levels at both TPPs and mine pitheads throughout FY25.

Enhanced Transportation Efficiency and Collaborative Efforts

Adding to the positive outlook, the number of coal transportation rakes deployed has increased by 10.54% compared to last year. This improved logistical efficiency further strengthens the coal supply chain and ensures timely delivery to power plants. The Coal, Railways, and Power Ministries are also working closely to guarantee sufficient coal availability at all domestic TPPs throughout the country.

Conclusion

The proactive measures implemented by the Coal Ministry have resulted in a robust coal supply situation for India’s domestic TPPs. These efforts will be instrumental in mitigating potential disruptions caused by the monsoon and ensuring uninterrupted power generation during the crucial monsoon season.

Disclaimer: This blog has been written exclusively for educational purposes. The securities mentioned are only examples and not recommendations. It is based on several secondary sources on the internet and is subject to changes. Please consult an expert before making related decisions.

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