NEW DELHI, June 20
Coal stocks at the country’s thermal power plants rose to over 45 million tonnes (mt) as on June 16, registering a rise of 31.7% over 34.25 mt in the corresponding period of last year, as per data from coal ministry. This will help the power plants to operate with high PLF amid the steep rise in peak demand due to heatwaves.
The improvement can be attributed to higher production and dispatches of coal from public and private companies.
At this level, coal stocks at thermal power plants are at their highest level. Availability of enough coal stocks is crucial as the demand for coal based power has grown by 7.3% in the current financial year compared to the last fiscal.
The country’s coal production stood at 207.48 million tonnes as of June 16, marking a growth of 9.27% from the same period of last year when the country had produced 189.87 million tonnes of coal. Of the total production, Coal India produced 160.25 million tonnes of coal, up 7.28% from last year while output from captive and commercial mines reached 33 million tonnes, an increase of 27% from the previous fiscal.
Additionally, the country’s coal mining companies cumulatively dispatched 220.31 million tonnes of coal to the power and other sectors. This was up by 7.65% than 204.65 million tonnes of coal dispatched during the same period last year.
The growth in coal dispatches can be attributed to the efficient logistical arrangements including first-mile connectivity projects and coal logistics plan ensuring a smooth and adequate supply of coal, the government said. To further improve the evacuation of coal, the ministry aims to launch 17 first-mile connectivity projects in the present financial year, an official source has told FE.
The overall coal stock in the country (at mines, transit, power plants) is over 144.68 million tonnes, ensuring a sufficient coal supply to the power sector, as per official data.
“The Sub-Group, comprising representatives from the Ministry of Power, Ministry of Coal, Ministry of Railways, and power-generating companies has played a crucial role in maintaining an efficient supply chain,” the government said.
With a growth in production of coal, the availability of rakes has also increased at an average of 10% this fiscal with 428.40 rakes supplied per day as of June 16. The evacuation of coal through coastal shipping has also registered a significant growth post the commencement of coal logistic policy.
“Traditionally, coal was transported via Paradip port only, but now, under proper coordination according to the coal logistics policy, coal is also being evacuated through Dhamra and Gangavaram ports,” the government said. “The infrastructural augmentation in the railway network has notably improved the movement of rakes from Son Nagar to Dadri, resulting in more than a 100% improvement in turnaround time.” The development comes amid the rising demand for power which reached its highest of 250 GW on May 30. The government has estimated this year’s peak power demand to touch 260 GW against last year’s peak of 243.3 GW recorded in September.
For FY25, the power sector has placed a demand of 874 million tonnes of coal to the coal ministry for supply to its thermal power plants and be able to meet the increasing demand for power. In FY24, the coal demand by the power sector stood at 821 million tonnes. Coal India has targeted to supply 171.4 million tonnes of coal to the power sector in the first quarter of the current financial year, up 11% from 153.4 million tonnes supplied in Q1FY24, a senior official from the company had said.
As the government plans to add 80 GW of new thermal power capacity amid rising demand for power, the demand for coal by the power sector is set to rise to 1.16 billion tonnes by the year 2030, a rise of 46.3% from present levels, according to the government. By the year 2047, power and other non-regulated sectors will alone require 1.7 billion tonnes of coal to be able to meet the peak demand.
The government is now confident of producing 1.08 billion tonnes of coal in the current fiscal from 997.4 million tonnes produced in FY24.
