India's coal stock levels experienced a slight decline in June 2024 due to increased thermal power generation, as reported by ICRA. Data from the National Power Portal indicates that coal stock levels decreased marginally to 16.2 days as of June 23, down from 16.7 days on May 31, 2024. This figure, "16.2," represents the number of days India's coal reserves would last at the current rate of consumption.
The reduction in coal stocks is attributed to higher demand for coal, driven by elevated demand for thermal power generation. While ICRA noted that the current stock levels are below the normative level, they are still higher compared to the same period last year.
India's peak power demand has led to increased thermal power demand, which primarily uses coal. According to the Ministry of Coal, thermal power plants account for about 75% of India's total power generation.
ICRA reported that the all-India thermal plant load factor remained robust at 76% in May 2025, up from 69% in the same period the previous year. Additionally, domestic coal production increased by 9.4% year-on-year during the first two months of the current fiscal year, supported by higher output from Coal India.
Coal supply to India's power sector also rose by 6.7% on an annual basis during April and May. ICRA highlighted that with a healthy rise in electricity demand for the fiscal year 2024-25, maintaining a moderate supply and adequate coal scale-up for the power sector remains crucial.
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