Coal stocks at power plants seen at 42 MT as demand surges

New Delhi: The Centre expects coal stocks at thermal power plants around 42 million tonnes at the start of the monsoon season, lower than last year's 58 million tonnes in the corresponding period, as higher electricity demand led to greater consumption of the solid fossil fuel this season.

The stocks, however, will be at comfortable levels, according to government officials.

"Last year was an aberration because of favorable weather conditions," a government official said. The current stock at domestic coal-based power plants is at 43.5 million tonnes.


Fuel with Coal India and Singareni Collieries Co is currently at 106.4 million tonnes, according to a government official. Stock at commercial and captive coal miners are at 15.6 million tonnes, while that in transit is at 4 million tonnes.

For comparison, last financial year started with 54.5 million tonnes of coal at domestic coal-based plants, and monsoon started with 58 million tonnes, marking an increase in stock. However, FY24 saw opening stock at 47.3 million tonnes, and by the beginning of July it was at 44.3 million tonnes.

Similarly, FY23 saw an opening stock of 34.5 million tonnes and June-end fuel at 33 million tonnes until the start of the monsoons as summer consumption rose.

Coal stock also depletes during monsoon and is usually followed by a pickup in fuel production and dispatch in the second half of the financial year. However, since this year may see an impact of El-Nino, coal production may also be slightly higher because less rainfall would mean more mining days, industry experts said.

Power demand has been higher this year with peak demand smashing records to touch 270 GW in May, leading to full operation of thermal power plants.

While a deficient monsoon is also expected to keep power demand on the higher side, the government is working on contingency plans including to keep thermal plants from taking maintenance shutdowns if need arises. The coal ministry is targeting 1.11 billion tonnes of coal production in FY27 while offtake aim is 1.15 billion tonnes.