Govt Dispatches Record 2.6 Million Tonnes Of Coal Daily Amid Critically Low Stocks

The Indian government has dispatched a record 2.6 million tonnes of coal daily to thermal power plants, as reported by Reuters. This figure is expected to stabilize soon, according to a senior Power Ministry official. The surge in coal dispatches aims to address declining fuel inventories at power plants across the country. As of October 19, 96 power plants had critically low coal stocks, up from 60 in mid-September.

Plants with less than three days of fuel are classified as having critically low stocks. The increase in coal deliveries highlights mounting pressure on electricity generation due to rising demand. Approximately half of India's coal-fired power plants are currently facing fuel shortages, exacerbated by surging electricity demand. The Power Ministry has stepped up coal deliveries to electricity producers, including the state-owned NTPC, following disruptions caused by scattered rainfall in mining regions.

Reduced hydropower generation, linked to the El Niño weather pattern, has further increased reliance on coal-based electricity. The official attributed the weaker hydropower output to rainfall disruptions. India's daily peak electricity demand has risen by about 45 to 50 gigawatts compared to the same period last year. Hotter weather and stronger industrial activity are among the factors contributing to the sharp increase in consumption.

To tackle supply concerns, the Central Government has allocated additional electricity to Gujarat, a major industrial hub. The ministry assured that Gujarat is not facing a shortage of either electricity or coal. The Gujarat government had requested industrial units to reduce electricity consumption during the evening hours to prevent potential supply disruptions as demand increases.