Coal stocks at power plants improve
To be sure, the situation has also improved on account of the onset of the monsoon, ending the heatwave in north and northwestern India.
The number of thermal power plants having critically low stocks of domestic coal has reduced significantly for the first time in nearly two months, implying higher production and improved transportation of coal in the country.
Data from the Central Electricity Authority (CEA) showed that as on Monday (June 20), only 74 of 150 power plants running on domestic coal in the country had critically low coal levels. The national peak demand on the same day was 183,850 MW, and the shortfall was merely 109 MW.
In view of improved coal supplies, domestic coal-based (DCB) power plants generated a record high-power of 3.3 million units per day between June 1 and June 16, data showed. Increased electricity generation did not deplete coal stocks at these DCB power plants during the same period and the stocks increased from 21.85 MT (June 1) to 22.64 MT (June 16).
“The situation started drastically improving from last week as states have been lifting coal mostly on time and the turnaround time has improved. Since June 17, the number of plants having low stocks has remained at 75 or below. Otherwise till June 13, about 81 plants running on domestic coal had critically low stocks. Between April and May, there were problems because 85 to 95 plants were having critically low stocks,” a senior official in the power ministry said, requesting anonymity.
To be sure, the situation has also improved on account of the onset of the monsoon, ending the heatwave in north and northwestern India.
An official in the ministry said India currently has stocks of at least 52 million tonnes (MT), which is sufficient for about 24 days of fuel required for power plants in the country. Additionally, about 4.5 MT of coal stock is ready to be transported to the power plants.
“With increased production, the rake supply from Coal India Ltd (CIL) to the power sector has also been at an all-time high. The rake loading to the power sector increased from 215.8 rakes per day in 2020-21 to 271.9 rakes per day in 2021-22, registering a growth of 26%. In the current year also (till June 16, 2022), the rake supply from CIL to the power sector has increased by 25% as compared to the same period last year. At the same time, coal stocks at pit head power plants are much higher than at distant plants,” the coal ministry said in a statement on June 19.
Officials in the power ministry, however, continue to be wary of the situation. Monsoons do see high demand for power (not as high as summer, though), and also have the potential to cause production bottlenecks. This year, the ministry is projecting the peak electricity demand to further go up to 215,000 MW amid increasing humidity levels and usage of air conditioners once the monsoon sets in.
“During monsoons, even if coal production is high, the real issues faced are flooding of mines and the wet coal jamming the coal handling plants. This is why the power ministry has been pushing gencos (power generators) to import coal and keep stocks ready at their power plants,” a second power ministry official said, requesting anonymity.
As per the power ministry’s directive, state gencos are supposed to import 10% of their coal requirement for blending purposes. The Centre asked states to place orders in such a way so that delivery of 50% quantity was ensured by May 31, 40% by June 30 and 10% by October 31.
However, very few states complied with the directive, prompting the Union power ministry to warn all gencos, including IPPs(independent power producers), on May 18 of cutting domestic coal supply by 5% if they do not import coal for blending by June 15.
Earlier this month, NTPC Limited, India’s largest power genco, awarded multiple contracts to import 6.25 MT of coal at a total cost of ₹8,308 crore.
In March too, the NTPC floated a tender to import 5.75 MT of coal.
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