Coal stocks at power plants improves: Report

With an increase in supplies and lower power demand, coal reserves at power plants have increased to an average of five days of usage, according to a report in The Economic Times. According to a senior government official, power plants are adding three lakh tonnes of coal supply every day and are likely to attain a six-day average stock in the next two to three days.

According to the official, total stocks at power plants have increased to 9.02 million tonnes, up from 7.5 million tonnes in the middle of this month. Due to a drop in day and night temperatures across the country, overall daily electricity generation has dropped to 3.7 billion units. On October 12, the same stood at roughly 4 billion units. In mid-October, coal-fired generation was at 2.6 billion units, down from 2.75 billion units. According to data, 113 Gw of the 165 Gw monitored capacity operated with coal stock less than nine days as of October 26.

According to the government official, all additional supplies are being transferred to non-power sectors without jeopardising the power sector. The aluminium industry has stated that it is struggling to keep operations running due to dangerously low coal stocks of only 1.5 to 3 days, and that it is on the edge of running out of coal.

“Since August 21, the industry has been receiving only 50% coal supply, which has now been dramatically reduced to 10%,” AAI wrote to the prime minister’s office on Wednesday.

According to ET, On October 26, the Central Electricity Authority (CEA) announced that power plants will require 40 million tonnes of domestic coal to build adequate supplies, which will begin in October.