Coal stock depletion slows by over 50% in October
Coal stock depletion at India's power plants has dropped by over 50% in October due to better supplies and railway transport.
The rapid decline of coal stocks at India's power plants has significantly decelerated in October, according to the Ministry of Coal. While the rate of depletion has dropped by more than half compared to September, the ministry noted that inventories have not yet begun the process of rebuilding.
Improved supplies ease inventory pressure
Data released by the Ministry indicates a sharp decline in the daily drawdown of coal. In September, the daily depletion stood at 0.243 million tonnes (MT), but this figure fell to 0.116 MT in October. This reduction suggests that while the intense pressure on coal inventories has eased, the situation is still in a phase of stabilisation rather than full recovery.
The improvement is largely attributed to two key factors:
- Increased Coal Supplies: Daily supplies to the power sector have seen a significant boost, rising approximately 36 per cent from their lowest levels recorded in September. On average, October's supplies are about 9 per cent higher than the previous month.
- Strengthened Railway Logistics: Coal transportation via rail has gained momentum, with loading averaging over 465 rakes per day during October. Notably, the daily target of 470 rakes was successfully met for three consecutive days.
Addressing "Critical Stock" concerns
The Ministry's clarification comes in response to various media reports suggesting an imminent risk of power shortages due to low coal levels at several plants. Addressing these fears, officials explained that the "critical stock" classification is a proactive measure rather than a crisis indicator.
"A plant appearing on this list is, by design, an early-warning entry and not an indication that it has run out of coal or is at imminent risk of shutting down," the Ministry stated.
The government is actively monitoring these vulnerable stations and redistributing coal supplies based on specific requirements to ensure that electricity generation remains uninterrupted across the country.
The road to stock rebuilding
As the monsoon recedes and the peak electricity demand begins to moderate towards the middle of October, the Ministry anticipates further stabilisation. The goal is to maintain a sustained loading rate of 465–475 rakes per day.
Achieving this consistent transport volume is seen as essential to enable the rebuilding of stocks. This preparation is vital to ensure the power sector is well-equipped to handle the upcoming surges in demand during the festive season, the winter months, and the subsequent summer period.