Power plants face coal stock shortage due to low supply, high demand

04 Oct 2021 CW Team

According to an official statement, a sharp increase in power demand and low supply of coal due to the monsoon has pushed the overall coal stock at India's thermal power plants to 8.1 mt or 4 days of stock on 1st October from 24 mt of a 13-day supply in August.

The thermal power generation plants of 6,960 MW capacity are currently facing a shortage of coal supply. Of the total 135 power plants, 72 have stocks left below three days, as compared to the recommended inventory of 14 days.

The Ministry of Power said that the increase in coal demand and shortage during the monsoon and less stock build-up in April-June had caused the depletion of coal stocks in power plants.

This year the power consumption in August-September has increased to 124.2 billion units per month from 106.6 billion units in the same period in 2019.

According to a release, heavy rainfall in the coal mines zone in September has affected the production and despatch of coal.

The power plants have supplied a disproportionate part of the increased demand with the share of coal-based power generation, increased to 66.4% from 61.9%.

Power plants have also reduced coal imports because of high international prices. In March, the imported price from Indonesia increased nearly to $200 per tonne from $60 per tonne.

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Also read: Coal India Limited to increase coal supplies to meet rising demands

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