Coal India aims to supply utilities 156mn t in Apr-Jun

State-controlled producer Coal India (CIL) plans to supply 156mn t of coal to domestic power plants during the peak demand April-June summer months, when rising temperatures typically boost air-conditioning use.

CIL said it is optimistic of supplying 156mn t of coal to the country's power sector during the April-June quarter amid concerns over a spike in coal demand. Even after selling the planned volume to power utilities in April-June, CIL said it expects to have a "healthy" 50mn t of coal inventories at its pitheads by the end of June.

CIL supplied a record 153.2mn t of coal to domestic utilities in April-June 2022, an increase of nearly 20pc compared with the year-earlier period. CIL is targeting 610mn t of coal supplies to utilities during the 2023-24 fiscal year ending 31 March 2024, when total demand from the sector is estimated at 821mn t. CIL supplied 554mn t of coal to utilities from 1 April 2022 to 13 March 2023 and is aiming to increase this to over 585mn t by 31 March, an increase of about 8pc on the fiscal year.

CIL, which meets more than 80pc of India's coal needs, said it will have 68mn t of coal at its pitheads by the end of this month, while utilities are estimated to have another 32mn t of domestic coal stocks. Another 12mn t of coal are at private washeries, ports and captive mines, while railway rakes hold around 3mn t of coal at a given point of time, it said. A total of 115mn t of coal will be at power plants by the end of March, compared with last year's corresponding availability of 92.7mn t, CIL said.

India's nationwide coal-fired power generation, which accounts for the bulk of the country's overall electricity generation, continued to grow in February. Coal burn rose to 94.43TWh in February, up from 87.65TWh a year earlier, according to data from the Central Electricity Authority (CEA). But this was down from 101.6TWh in January because of fewer days in the month.

India boosts efforts to meet power demand

Delhi has invoked emergency rules under federal electricity law, ordering utilities using imported coal to boost electricity generation to meet anticipated increased summer power demand.

India's power ministry aims to buy 1,500MW of coal-fired electricity capacity using imported coal to meet an anticipated deficit during the peak summer demand month beginning on 10 April, when rising temperatures typically boost air-conditioning use.

In another recent decision to curb possible power shortages, the power ministry on 12 March nominated NTPC Vidyut Vyapar Nigam (NVVN) - a subsidiary of state-controlled utility NTPC - to procure and supply 4GW of power from gas-based generators during the identified crunch period from 10 April to 16 May.

Peak power demand is forecast to hit 229GW in April, the power ministry said in February, up from 176GW recorded on 18 February, according to data from the Central Electricity Authority. The expected increase in peak demand will be predominantly met by coal-fired power generation, which account for more than 70pc of India's overall electricity generation. Optimal generation at imported coal-fired power plants as well as blending of domestic and imported coal at domestic coal-based utilities will ease pressure on domestic coal supplies and ensure all power plants are available during the peak demand period, the ministry said.

By Ajay Modi

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