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Coal Stock Depletion Slows Over 50% In October. But Inventories Are Still Falling

Daily coal stock drawdown at power plants fell to 0.116 million tonnes in October from 0.243 million tonnes in September. The Ministry of Coal said inventory pressure has eased, although stock rebuilding is yet to begin.

Coal Stock Depletion Slows Over 50% In October. But Inventories Are Still Falling
Average coal supplies to the power sector in October are around 9% higher than September.
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  • Coal inventory drawdown at Indian power plants halved from September to October
  • Daily coal supplies to the power sector rose about 9% in October from September
  • Coal loading by rail averaged over 465 rakes daily, meeting targets consistently

Coal inventory pressure at India's power plants has eased sharply in October, with the pace of stock depletion falling by more than half from the previous month as supplies and railway movement improve, the Ministry of Coal said on Friday.

The daily drawdown of coal stocks declined to 0.116 million tonnes (MT) in October, from 0.243 MT per day in September, according to ANI. The ministry said the trend indicates that inventory levels are beginning to stabilise, although a sustained rebuilding of stocks has not yet started.

The improvement comes amid concerns over critically low coal inventories at some generating stations. The ministry, however, clarified that being classified under the “critical stock” category does not mean a plant has run out of fuel or faces an immediate risk of shutting down.

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Coal availability has improved notably since September. Daily supplies to the power sector have risen by around 36% from the month's lowest level, while average October supplies are about 9% higher than September.

Railway logistics have also strengthened. Coal loading has averaged more than 465 rakes a day in October, with the 470-rake daily target achieved for three consecutive days. Supplies transported through road and other modes have also improved, according to the ministry.

The government expects inventories to strengthen further as the monsoon recedes and peak electricity demand moderates around mid-October.

It said maintaining coal loading at 465-475 rakes per day should support further stabilisation and allow stock rebuilding ahead of the festive, winter and subsequent summer demand periods.

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The ministry is monitoring plants with critical inventories and reallocating coal based on requirements at vulnerable stations. It is also coordinating with the Ministries of Railways and Power to ensure fuel availability does not constrain electricity generation anywhere in the country.

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