Comfortable coal stocks even after monsoon, says Union coal secretary

Govt expecting 37 mt of coal stocks by Oct-end, 7 mt more than the previous year

The coal stocks at thermal power plants are expected to be at a comfortable 37 million tonnes (mt) by October-end even after depletion during the monsoon months, Union Coal Secretary Vikram Dev Dutt said on Wednesday, noting that there will likely be a stock-up of 7 mt more than the previous year during the same period.

 

By the end of last October, the stock was 30 mt.

 

With the India Meteorological Department (IMD) forecasting more heatwave days in April-June, India is expected to have a record peak power demand of 270 GW this summer against 250 GW a year ago.

 

In such circumstances, having sufficient opening stocks, which are bound to deplete in the first two quarters of the financial year, is crucial for thermal power generation. Additionally, it is seen that offtake by thermal power plants falls during monsoon months. India's thermal power capacity is 247 GW, while the installed capacity of all sources of electricity is 470 GW.

 

“Therefore, the coal ministry plans to stock up the thermal power plant so that whatever depletion takes place during the monsoon months does not lead to any level of criticality,” Dutt told reporters at a conference ahead of the 11th Asian Mining Congress (AMC) and International Mining Exhibition (IME), scheduled from October 30 to November 2.

 

Historically, after the peak power consumption in the first half of a year, the depletion from the opening stock on April 1 is generally around 17-18 mt. As of April 1, the built-up stock at thermal power plants is 55 mt, an all-time high and 16.1 per cent more than the previous year.

 

“If we assume that that is the calculation and a fairly safe calculation to make, the stock by the end of October will be around 37 mt as opposed to 30 mt last October,” he said.

 

In a significant milestone, India in FY25 produced 1.04 billion tonnes of coal, nearly 5 per cent more than the previous year.

 

India aims to increase domestic coal production by approximately 42 per cent to about 1.53 billion tonnes (bt) by 2030-31 from 1.08 bt estimated for FY26.

 

Meanwhile, the Steel Authority of India Ltd. (Sail) Chairman Amarendu Prakash, during the event, said that a safeguard duty on steel products is important.

 

“So, we feel that safeguard duty has to come. And afterwards, as the tariff announcements settle down in two-three months, we can take a look,” Prakash said.

 

The Directorate General of Trade Remedies, under the Ministry of Commerce and Industry, last month recommended a 12 per cent safeguard duty on certain steel products for 200 days to protect the domestic industry from what it describes as “serious injury” caused by a recent surge in such imports.

 

AMC and IME 2025 will facilitate a buyer-seller meet, primarily focusing on biosecurity to identify new opportunities, new technologies towards green leaders and capacity, Sail

chairman informed.