Coal India says 168 MT coal buffer adequate for summer power demand

Coal India said current coal inventories across power plants, mine heads and transit points are sufficient to meet rising summer electricity demand without supply disruptions

State-run Coal India Limited (CIL) on Tuesday said adequate coal stocks are available in the system to meet rising summer power demand, seeking to allay concerns over possible shortages at thermal power plants.

 

The company said a total coal buffer of 168 million tonnes (MT) is currently available, including inventories at power plants, CIL mine heads, transit points, and coal being transported through rail networks.

 

Coal stocks at domestic coal-based thermal power plants stood at 47.6 MT as of May 23, while inventory at CIL’s mine heads was 113.5 MT as of May 24, up 10 per cent year-on-year. The current stock level is sufficient to meet around 19 days of consumption, the company said.

 

In addition, around 3 MT of coal is lying at transit points such as goods sheds, ports, and private washeries, while nearly 4 MT is currently in transit through railway rakes.

 

CIL said the reduction in coal stocks at power plants during peak summer months is a “natural occurrence” and should not be interpreted as a supply-side crisis.

 

The miner, which meets over 80 per cent of India’s coal demand, also said around 50 MT of in-situ mine coal is readily available for quicker extraction and dispatch if demand rises further.

 

As of May 20, 21 thermal power plants were categorised under criticality, of which 11 were domestic coal-based units. Seven of these plants source coal from CIL.

 

The company said it has been regularly communicating with power producers to build up inventories in advance, particularly for plants located in logistically challenging areas.