Coal India Limited (CIL) has assured that there is no cause for concern over coal shortages, even as daily coal consumption by the country’s thermal power plants has risen sharply. The company has announced a substantial coal buffer of 168 million tonnes (MT) to meet the increased summer demand.
As of 23 May, coal stocks at domestic coal-based plants stood at 47.6 MTs, while CIL’s own mine heads reported a comfortable inventory level of 113.5 MTs as of 24 May, marking a 10% increase year-on-year. This stockpile is sufficient to meet 19 days of consumption. Additionally, approximately 3 MTs of coal are positioned at transit points such as goods sheds, private washeries, and ports. Rakes on Run, or coal in transit at any given time, account for around 4 MTs, culminating in a total of 168 MTs of coal available in the system.
CIL attributes the compression of coal stock levels at coal-fired plants during peak summer to natural occurrences rather than supply-side crises. The company also highlights the availability of approximately 50 MT of in-situ mine coal, which is ready for quicker extraction and supply should demand necessitate.
Among the 21 plants identified under criticality as of 20 May, 11 are domestic coal-based plants, with 7 sourcing their coal from CIL. The company has been actively engaging with power plants to encourage them to build up their stocks in advance of peak demand periods, particularly for plants located at challenging logistic points.
CIL has reiterated its capability to meet the generation capacity requirements of domestic coal-based plants, ensuring a steady supply of coal to support the country’s energy needs.
Disclaimer: This article is based on a regulatory filing submitted to the National Stock Exchange of India (NSE).