India's Ministry of Coal said on October 9 that coal dispatches to thermal power plants have risen, with October supply averaging about 9% higher than the previous month, helping reduce coal stock depletion at the plant level.

Nevertheless, replenishing stocks at 176 domestic coal-based power plants, with a combined capacity of about 207 GW, will take time. As of October 8, domestic coal-based power plants held 18.25 million tonnes of coal, and 81 plants were classified as having critical stocks, according to the latest data released by the Central Electricity Authority.

Coal inventories at power plants are drawn upon when daily coal supply falls short of demand. The Coal Ministry, for instance, said on October 5 that state-run Coal India dispatched 1.75 million tonnes, 1.87 million tonnes, and 1.81 million tonnes of coal over October 1-3, respectively, averaging 1.81 million tonnes. The daily requirement of domestic coal-based plants, however, stands at about 2.95 million tonnes.

Coal stock position should be assessed together with the improvement seen since the September trough in supplies, the Coal Ministry said in a statement. It added that daily supplies to the power sector increased by about 36% from the September low, with October averaging about 9% higher than September. The rate of stock depletion also moderated considerably.

Rail loading has strengthened accordingly, averaging more than 465 rakes per day in October, with the 470-rake target met on three consecutive days. The ministry emphasized that supplies through other modes, including road, have also improved.

The ministry said stock depletion had slowed sharply, with the daily drawdown falling by more than half from 243,000 tonnes in September to 116,000 tonnes in October. It noted that the position was therefore stabilizing, though stock rebuilding has yet to begin.

Critical stocks

The ministry said the rise in plants with critical stocks is closely monitored, with requirement-based redistribution of coal to vulnerable plants to ensure adequate supplies and uninterrupted power generation.

It assured that with the monsoon receding and peak demand expected to moderate by mid-October, in line with historical trends, sustained loading of 465-475 rakes per day should support further stabilization and enable stock rebuilding ahead of the festive, winter and subsequent summer demand periods, thereby reducing the number of plants in the critical category.

Indian thermal power plants are burning more coal as electricity demand is high due to higher temperatures, particularly during non-solar hours. For instance, while coal receipts rose by 3.3% from a year ago in April-August FY27, consumption rose by 9.2% during the same period.

Over July-September, India's energy consumption increased by 11.5% year on year to about 502 TWh. Consumption last month stood at 162 TWh, up 11% on the year.