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Coal Ministry targets nearly 20% higher stock at power projects by June 30

Coal ministry aims for 38-40 million tonnes closing stock by June 30, with a 13-19% increase from last year, to address summer and monsoon demands, benefiting from improved rail transportation and port supply.
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Source: ET Bureau

The coal ministry is expecting a closing stock of around 38-40 million tonnes at domestic coal-based power plants by June 30, when the summer demand starts cooling off from highs and monsoon logistical disturbances pick up.

The target is 13-19% higher than the stock on the same date last year.

The stock is expected to be sufficient to start the monsoon season, when coal production and evacuation typically slows down, a senior government official said. “There is massive improvement in rail transportation in Mahanadi Coalfields. The average rake supply [in Mahanadi Coalfields] is currently at 99-100 per day compared with 94 per day in FY24,” the official said.

Start of coal transportation from Dhamra and Gangavaram ports a few months back and restart of production from Rajmahal mines last year have also helped in increasing the supply to power plants, the official said.

During monsoon, depletion of stock can be higher as coal production and transport take a hit. The current stock at domestic coal-based power plants is around 46.5 million tonnes.

Moreover, the financial year started with 47.3 million tonnes, much higher than last year’s 34.5 million tonnes. Higher fuel stocks leave a cushion to raise power generation as demand rises, reducing the urgency of quick railway transportation.

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