Coal India Limited (CIL) has addressed concerns regarding potential coal shortages, stating that there is a substantial buffer of 168 million tonnes (MT) to meet the rising demand from thermal power plants. Despite increased daily consumption, CIL’s strategic stock levels at mines and plants, along with coal in transit, ensure system stability. The company has adequate reserves to meet current generation needs and has been proactively coordinating with power plants to manage peak summer demand.
CIL Addresses Supply Concerns
Coal India Limited (CIL) has issued a statement to alleviate any apprehensions regarding coal supply, particularly in light of a sharp increase in daily coal consumption by the country’s thermal power plants. The company confirmed that there is a significant buffer of 168 million tonnes (MT) of coal available to meet the ongoing summer demand.
Robust Stock Levels
As of recent data, coal stocks at domestic coal-based plants stood at 47.6 MTs (as on 23 May). Furthermore, CIL’s own mine heads maintain a healthy inventory of 113.5 MTs (as on 24 May), which represents a 10% year-on-year increase. This aggregate stock level is sufficient to cover approximately 19 days of consumption. In addition to these reserves, around 3 MTs of coal are in transit at various points such as goods sheds, private washeries, and ports, with approximately 4 MTs of coal actively on the move (rakes on run), bringing the total available coal in the system to 168 MTs.
Understanding Seasonal Fluctuations
The company clarified that the observed reduction in coal stock levels at coal-fired plants during peak summer is a natural occurrence and not indicative of a supply-side crisis. CIL also highlighted that there are approximately 50 MT of in-situ mine coal on tap, ready for accelerated extraction and supply should demand necessitate it.
Critical Plant Supply
Out of 21 plants categorized as critical (as of 20 May), 11 are domestic coal-based plants, and 7 of these source their coal directly from CIL. CIL has been actively engaging with power plants, encouraging them to build up their coal stocks in advance of peak demand periods, especially for plants located at challenging logistic points, ensuring their operational readiness.
Ensuring Generation Capacity
Based on its current reserves and logistical capabilities, CIL asserts that it possesses adequate quantities of coal to meet the generation capacity requirements of domestic coal-based plants, thereby ensuring a stable power supply.
Source: BSE
