Coal ministry data on Sunday showed fuel stocks at power plants increased from 21.8 million tonnes (MT) on June 1 to 6 MT by June 16. This is enough for 10 days, despite the record 3.3-billion. -Units-Daily generation of electricity during the period. The total coal production in the first two months of the current financial year stood at 137.8 MT, up from 104.8 MT in the previous corresponding period.
The ministry said that the pace of production is going on in the first fortnight of June. Although small, the increase in fuel stocks at power plants signals the beginning of inventory buildup as it comes amid an unprecedented increase in power demand and a 60% drop in production by imported coal-fired units.
Just a few weeks back, most power plants were operating with coal inventories for 3-4 days.
Officials expected inventory buildup to accelerate as summer continued to ease, increasing demand for electricity, increasing availability of hydro and wind power, and importing contracted coal blending domestic fuels.
Coal India, which meets 80% of the fuel required for production, supplied 129.5MT coal to power plants in the April-June period, an increase of 4% from 120. 6MT was obliged to provide under fuel. Supply agreements that assume plants run at 85% capacity. Daily rake loading 215. Increased from 8 rakes daily to 271 in 2020-21. 9 rakes in the period April-June 16.
Effectively, supply was higher than fuel as plants operated at 61% capacity compared to 61% in 2021-22 to meet higher power demand and shortfall of imported coal-fired plants.
Higher production has increased the coal stock in the mines to 54MT or the requirement of 24 days for the power sector. This will come in handy for the monsoon months when mining is hampered by unusually heavy rains as happened in October last year. In addition, there is 4.5 MT of coal for transportation to railway sidings, washeries and ports.