Indian coal-based power plants’ inventory has increased to 33.15 million tonnes (mnt) at the end of January2023 from 32.32 mnt in December 2022, a rise of 0.80 mnt m-o-m, as per data provided by the Ministry of Power.
This marked a rise in inventory level at the power plant for the fourth consecutive month, indicating the preparedness for upcoming summer season where demand for power is expected to surge.
However, the growth rate was particularly slow in January compared to the previous months. In fact, coal accumulation is steadily falling since November 2022. The growth in coal inventory at power plants in November was 2.7 mnt, while that in December was 1.39 mnt.
Moreover, there was a contrast in the inventory level movement with regards to the origin of coal.
Notably, inventory made-up of domestic coal has increased by 1.7 mnt to 29.5 mnt in January 2023. On the other hand, imported coal stock at the power plants dropped to 3.6 mnt in January 2023 from 4.5 mnt in December 2022.
Rise in coal consumption
The lower growth in coal inventory in January was because coal consumption in power plants had risen by 4% m-o-m which had outpaced the growth rate of 3.88% recorded in coal receipt.
In January, power plants received coal at an average of 2.24 mnt/day while their coal consumption was at an average of 2.20 mnt/day, which implies surplus coal inventory of almost 37,000 t being added on a daily basis.
In December, power plants received an average of 2.157 mnt of coal per day, while their coal consumption was 2.118 mnt//day, with only 39,000 t of coal added to their inventory each day.
Critical power plants
The number of power plants in critical condition was 56 in January, constant m-o-m. A power plant is at a critical stage if its coal stock is less than 25% of the normative stock. Notably, the data is exclusive of nine power plants that were out of operation in January.
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