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Coal supplies to power plants rise 36% from September lows; rail loading hits 465 rakes a day

The Coal Ministry stated that rail loading has also improved, stock depletion and power demand are also expected to moderate mid-October citing historical trends.

Coal supplies to power plants rise 36% from September lows; rail loading hits 465 rakes a day

Coal supplies to power plants in India have seen a significant 36% increase since September low levels, according to government data released on Friday. This rise is reflected in a 9% higher average daily supply in October compared to the previous month, indicating improved fuel availability for power generation. Rail-based coal deliveries have also been boosted, with an average of 465 rakes being loaded daily, the government reported. Additionally, road-based supplies have shown improvement as well.

Coal India and its subsidiaries provided power plants with existing supply agreements the option to procure extra coal beyond their annual contracted amounts via road transport, complementing regular rail-based deliveries. The Coal Ministry anticipates that rail loading of 465–475 rakes per day will be sufficient to meet power demand, which is projected to ease by mid-October, aligning with historical patterns.

The coal supply situation is stabilizing, with the gap between consumption and incoming supplies shrinking from 0.243 million tonnes (MT) per day in September to 0.116 MT in October. Despite this stabilization, stock rebuilding has not yet begun. The government clarified that the 'critical stock' category, which identifies power plants holding less than the prescribed threshold of normative coal stocks, serves as an early-warning system rather than an indication of imminent coal shortages or plant shutdowns. The ministry's statement addressed concerns over low coal inventories at power plants.

Written by urgent.news from The Hindu's reporting — not their text. Machine-written — may contain errors; check the original before relying on it.

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