Coal Supplies to Power Plants Rise 36% from September Low
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Coal Supplies to Power Plants Rise 36% from September Low

Daily coal supplies to India’s power sector have increased by around 36 per cent from the low recorded in September, the Ministry of Coal said on Friday. The ministry said the improvement had been accompanied by a significant moderation in the rate of stock depletion and stronger rail movement.

The daily drawdown of coal stocks fell by more than half, from 0.243 mn tonnes per day in September to 0.116 mn tonnes per day in October. The ministry said the position was stabilising, although stock rebuilding had not yet started.

Rail loading has also strengthened, with an average of more than 465 rakes being loaded each day in October. The 470-rake daily target was achieved for three consecutive days, indicating an improvement in the movement of fuel to power stations.

Supplies transported through other modes, including road, have improved as well. The ministry said the combined gains in rail loading and alternative transport were supporting the increase in deliveries to generating plants.

The ministry clarified that the classification of a power plant as having critical coal stocks is based on a prescribed threshold of normative inventory. It is intended as an early-warning measure for plants holding less than the required level of stock, rather than confirmation of an actual fuel shortage or generation loss.

A plant included in the critical-stock list may therefore still have coal available and may not be at immediate risk of shutting down. The ministry said coal inventories should be assessed alongside the improvement in supplies from the September trough, while noting that stock levels had yet to begin rebuilding.

Daily coal supplies to India’s power sector have increased by around 36 per cent from the low recorded in September, the Ministry of Coal said on Friday. The ministry said the improvement had been accompanied by a significant moderation in the rate of stock depletion and stronger rail movement. The daily drawdown of coal stocks fell by more than half, from 0.243 mn tonnes per day in September to 0.116 mn tonnes per day in October. The ministry said the position was stabilising, although stock rebuilding had not yet started. Rail loading has also strengthened, with an average of more than 465 rakes being loaded each day in October. The 470-rake daily target was achieved for three consecutive days, indicating an improvement in the movement of fuel to power stations. Supplies transported through other modes, including road, have improved as well. The ministry said the combined gains in rail loading and alternative transport were supporting the increase in deliveries to generating plants. The ministry clarified that the classification of a power plant as having critical coal stocks is based on a prescribed threshold of normative inventory. It is intended as an early-warning measure for plants holding less than the required level of stock, rather than confirmation of an actual fuel shortage or generation loss. A plant included in the critical-stock list may therefore still have coal available and may not be at immediate risk of shutting down. The ministry said coal inventories should be assessed alongside the improvement in supplies from the September trough, while noting that stock levels had yet to begin rebuilding.

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