Coal inventories at India’s thermal power plants have dropped sharply, with stocks at 74 of 190 plants now classified as critically low. The stockpile stood at 22.9 million tonnes (mt) on September 19, enough for around seven days of generation, according to Central Electricity Authority (CEA) data cited by Business Standard.
The latest figure marks a deterioration from August, when 51 plants were facing critically depleted stocks.
Stocks fall 24 per cent since August
Coal stocks at thermal power stations have declined 24 per cent from 29 mt on August 31. The inventory position had already weakened in August, when stocks fell around 42 per cent from the same month last year.
At the same time, coal-based power generation rose nearly 13 per cent amid higher electricity demand. Average coal cover fell to nine days in August, compared with 17 days a year earlier—the lowest level since November 2023.
"The last time inventory levels were at a similar level was in October 2023, when stocks fell to around 7.5 days of cover amid an El Nino-driven increase in power demand. An even tighter inventory position was recorded in September 2021, when stocks fell to around 4 days due to supply-chain disruptions," said Sehul Bhatt, director, Crisil Intelligence.
Power demand rises in September
Electricity demand, which had remained relatively stable in July and August, crossed 255 gigawatt (Gw) in the first week of September and touched around 267 Gw. The peak demand recorded this year so far stands at 270 Gw in May.
The CEA considers stocks critical when they fall 25 per cent below the prescribed level or when a plant has less than three days of generation capacity left.
Crisil has said the fall could be linked to logistical issues rather than structural shortages in coal supply. Daily thermal generation remained between 4,058 million units (mu) and 4,190 mu over the past week, according to CEA data.
Coal supply measures stepped up
The Ministry of Coal said earlier this month that corrective measures were being taken to improve supplies to plants with critical stocks. Rake loading for the power sector increased from 370 to 444 rakes within a week in early September.
Coal India Ltd has around 76 mt at its pitheads, indicating adequate availability at the production end.
Monsoon conditions can affect coal production, loading, quality and railway movement. The CEA's stocking norms account for these seasonal disruptions, with September requiring 12 days of stock at pithead plants and 20 days at non-pithead plants.