Coal India offers road route to power plants to augment coal supplies

State-run miner Coal India has offered thermal plants having fuel supply agreements the option to lift additional coal, including beyond their annual contracted amounts, through road transport, as part of efforts to expeditiously boost supplies to the power sector.

Some plants are facing coal stock depletion amid elevated electricity demand in several parts of the country facing an uncertain and challenging summer and forecasts of strong El Nino weather conditions. Coal supplies, though higher year-on-year, are going through a seasonal slack.

The coal ministry Saturday said Coal India subsidiaries have adequate stocks of the fossil fuel and that the company is seeking to open an additional supply mode alongside the existing rail route.


Coal India currently has 76 million tonnes of coal at its pitheads, along with 46 million tonnes of ready-to-mine coal exposure, according to the ministry. It highlighted that both production and supply at Coal India are gathering pace and likely to improve further as intense monsoon rains over the coal-bearing regions are starting to show clear signs of easing.

Amid prolonged spells of rain through July and August, particularly across the east-central parts of the country, Coal India maintained a steady supply run, the ministry said. During April-August, the miner supplied 322.9 million tonnes of coal, 6.7% more than a year earlier.

Easing rainfall is already bringing relief on the ground, the ministry said.