Coal India Limited (CIL) on Tuesday said there is no immediate concern over coal shortages despite a sharp increase in coal consumption by thermal power plants during the peak summer season.
In a press release submitted to stock exchanges, the state-run miner said a total coal buffer of 168 million tonnes (MT) is currently available in the system to meet rising electricity demand.
According to the company, coal stocks at domestic coal-based power plants stood at 47.6 MT as of May 23, while inventory at Coal India’s mine heads was at 113.5 MT as of May 24, marking a 10% year-on-year increase.
Coal India added that around 3 MT of coal is currently lying at transit points such as ports, private washeries and goods sheds, while another 4 MT remains in transit through railway rakes.
The company clarified that lower stock levels at thermal plants during summer should not be interpreted as a supply-side crisis, stating that such reductions are a natural seasonal occurrence due to elevated electricity consumption.
Coal India also highlighted that nearly 50 MT of in-situ mine coal remains readily available for quicker extraction and dispatch if demand rises further.
The company further noted that out of 21 power plants currently classified under critical stock levels, 11 are domestic coal-based plants and seven of them source coal from Coal India.
Coal India said it has been regularly communicating with power producers to maintain adequate inventories ahead of peak summer demand, particularly for plants located in logistically difficult regions.
The PSU reiterated that it has sufficient coal availability to support domestic coal-based power generation requirements across the country.