India is ramping up coal shipments to power plants as the number of generators with critically low fuel stocks rises, with heavy rains disrupting mining and transportation in key coal-producing states
India is stepping up coal shipments by rail to power plants after fuel inventories at several generators fell to critically low levels, raising pressure on the government to ensure uninterrupted electricity generation.
The number of power plants with coal stocks below 25 per cent of their required inventory, or with enough fuel to generate power for less than three days, rose to 58 as of September 5 from 46 at the end of August, according to government data, as reported by Reuters.
Of the 58 affected plants, 53 are domestic coal-fired units, according to data from the Central Electricity Authority (CEA).
The coal ministry said the situation was being closely monitored and corrective measures had already been put in place to improve supplies to plants facing critical shortages.
Rail shipments increase
Coal loading for power plants increased to 444 unit trains, or rakes, on September 6 from 370 on September 3, government data showed.
The increase follows a rise in coal dispatches from state-run Coal India and its subsidiaries, as well as private mines. The government said loading had increased each day since September 3.
More from BusinessThe latest figures come after CEA data showed that coal stocks at 50 thermal power plants had fallen below 25 per cent of their normative requirement as of September 2. Those plants had 28.2 million tonnes of coal against a prescribed requirement of 58.7 million tonnes.
The available stock was equivalent to about nine days of coal consumption at an 85 per cent plant load factor, compared with a normal requirement of about 19 days.
Monsoon disrupts supplies
Heavy rainfall in key coal-producing states, including Odisha, Jharkhand and Chhattisgarh, has disrupted mining and slowed the transportation of coal to power plants.
The supply pressure has emerged as electricity demand remains high, making timely movement of coal particularly important for thermal power generators.
Coal accounts for about three-quarters of India’s electricity generation. Any prolonged disruption in fuel supplies could therefore put pressure on power generation and grid reliability.
However, the government has not indicated that the country is facing an overall coal shortage.
Coal India, the world’s largest coal producer, continues to hold about 76 million tonnes of coal at its pitheads, according to the latest government figures. The company has also offered additional coal to power plants with existing fuel supply agreements as inventories at generators have fallen.
The focus is now on moving coal from mines to power stations faster. Higher rail loading, additional supplies from mines and closer monitoring of plants with low inventories are expected to ease the pressure as monsoon-related disruptions subside.
