The Indian Ministry of Coal has assured the nation that there is an ample supply of coal for thermal power plants (TPPs) despite recent mandates for coal blending. According to the ministry, coal dispatch to the power sector has seen a significant increase of 5.8%, reaching 324.50 million metric tons in the current fiscal year. This growth is attributed to the efficient coal supply to TPPs and the strong coal stock position at various pitheads across the country. Thermal power generation has also experienced a notable increase of 6.58% from April to August 2023 when compared to the same period in the previous year, resulting in a total of 517.34 billion units of electricity.
As of August 31, the overall coal stock position, which includes mines, thermal power plants, and transit locations, stood at a substantial 86 million metric tons. This figure represents a notable increase from the 68.76 million metric tons reported during the previous year. Furthermore, the pithead coal stock at Coal India Limited reached 45.33 million metric tons, indicating a significant year-on-year growth of 45.66%.
This statement from the Indian Ministry of Coal comes in the wake of the Ministry of Power’s directive to power generating companies to blend 4% imported coal until March 2024 due to shortfalls in domestic coal supply. Despite efforts to boost domestic coal supply in the first quarter of FY24, shortfalls persisted. To bridge the gap between coal consumption and the receipt of domestic coal, the import of coal became necessary to prevent coal stock levels from reaching critical lows.
The Ministry of Coal’s announcement underscores the government’s commitment to ensuring a stable and reliable power supply in the country. While challenges remain, including the need for coal blending, the efforts to maintain adequate coal supplies to TPPs and steadily increase thermal power generation reflect a proactive approach to addressing energy needs and mitigating potential disruptions in the power sector.