India’s coal-based power plants’ inventory showed a rebound in October, after falling in September.
As per data provided by the power ministry, the country’s power plants’ coal inventory rose by 2.1 million tonnes (mnt) to 28.2 mnt in October 2022. However, in September’s coal stocks had fallen to 26.1 mnt against 29 mnt in July-August amid fall in dispatches because of the monsoon.
Meanwhile, domestic coal inventory rose from 20 mnt in September to 21.9 mnt in October while imported stocks inched up from 6 mnt to 6.2 mnt in the said period. Notably, the existing inventory is sufficient for at least 15 days of power generation.
Why did coal inventory increase in Oct?
The hike in coal stock at power plants is the result of a reduction in power demand while coal supplies remained constant. Coal consumption in October had dropped to an average of 1.87 mnt per day from 2.05 mnt per day in September. However, the coal received by the power plants remained constant in September and October at 1.95 mnt per day.
The power plants received nearly 60 mnt of coal but consumed around 58 mnt in October.
Drop in number of power plants with stocks at critical level
Amid increase in coal inventory, the number of power plants at a critical threshold has decreased. On September 30, there were 68 power plants at critical levels; as of October 31, there were just 56.
Notably, this data is meant for 171 operational power plants.
Sector-wise power plants’ performance
It was also revealed that Central government-owned and private sector power plants’ performance improved. There were seven central power plants at critical stage in terms of coal stocks in September; but by October, there were just two. Similarly, the number of private sector power plants in a critical stage decreased to 32 in October from 38 in September. State power plants, meanwhile, have not improved.
Outlook
Coal inventory at power plants are expected to increase in the near term as winter traditionlly sees moderate demand for power. In addition, India’s domestic coal production is expected to increase in the second half of FY2022-23 as it is not impacted by monsoons.
Please click here for more details
Leave a Reply