The coal stock at all thermal power plants has reached an all-time high of 58.25 million tonnes (mt), sufficient to meet 25 days of consumption.
“This record stockpile bolsters India’s energy security, ensures an uninterrupted power supply during the peak summer months, and provides reassurance of adequate stock for the upcoming monsoon period, when coal production and transportation often face challenges due to heavy rainfall,” said a statement from the railways ministry.
The availability of adequate coal at the thermal power plants has been a major concern in the past, and despite sufficient production, off-take has been a challenge. However, this record stock has to be seen in the context of an early onset of monsoon this year.
India’s thermal coal imports fell 8 per cent YoY in FY25 to around 169 mt due to record domestic production and reduced imported coal blending, according to commodities consultancy BigMint.
Indonesian coal
Thermal coal importers China and India are also slashing Indonesian shipments of the fuel in favour of energy-dense grades from elsewhere as a global fall in prices has made higher-quality coal more competitive.
“Higher calorific value coal is more expensive, but produces more energy for every dollar spent at current prices. One million tonnes of higher CV coal can replace 1.2-1.3 million tonnes or even 1.5 million tonnes from Indonesia,” Vasudev Pamnani, director at India-based coal trader I-Energy Natural Resources, told Reuters.
China and India have also stepped up purchases from Tanzania, which was largely absent from the global seaborne coal trade map until Russia’s war on Ukraine in 2022. Indian traders have also increased higher-grade coal purchases from Kazakhstan, Colombia and Mozambique this year.
Jharia Master Plan
The Cabinet Committee on Economic Affairs on Wednesday approved the revised Jharia Master Plan (JMP) for addressing issues related to fire, land subsidence, and the rehabilitation of affected families in the Jharia Coalfield. The total financial outlay for the implementation of the revised plan is ₹5,940.47 crore.