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Coal Ministry seeks nearly 20% higher stock at power projects by June 30

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Notification 23 Apr 2024 11:37 AM IST Economic Times

When summer demand starts to cooling off from highs and monsoon logistical disruptions intensify on June 30, the coal ministry estimates a closing stock of about 38–40 million tonnes (MT) at domestic coal-based power plants. Compared to the stock on the same date last year, the target range is 13–19% higher.

The stock is expected to be sufficient to start the monsoon season, when coal production and evacuation typically slows down, a senior government official said. "There is massive improvement in rail transportation in Mahanadi Coalfields. The average rake supply [in Mahanadi Coalfields] is currently at 99-100 per day compared with 94 per day in FY24," the official said.

Start of coal transportation from Dhamra and Gangavaram ports a few months back and restart of production from Rajmahal mines last year have also helped in increasing the supply to power plants, the official said. During monsoon, depletion of stock can be higher as coal production and transport take a hit.

The current stock at domestic coal-based power plants is around 46.5 million tonnes. Moreover, the financial year started with 47.3 million tonnes, much higher than last year's 34.5 million tonnes. Higher fuel stocks leave a cushion to raise power generation as demand rises, reducing the urgency of quick railway transportation.