New Delhi: Coal India Limited (CIL) on Tuesday sought to dispel concerns over coal availability at thermal power plants, saying the combined stock across the supply chain amounts to 168 million tonnes (MT) is enough, it said, to comfortably absorb the seasonal spike in demand during peak summer.
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According to CIL, coal stocks at domestic coal-based plants stood at 47.6 MT as of May 23, while mine-head inventories held by the company were at 113.5 MT as of May 24, a level it described as "comfortable" and 10 percent higher year-on-year. The mine-head stock alone, it said, represents 19 days of consumption. A further 3 MT is awaiting despatch at transit points including goods sheds, private washeries and ports, and approximately 4 MT is in transit as rakes on run at any given time, taking the total to 168 MT.
CIL pushed back against characterising the situation at stressed power plants as a supply-side failure. As of May 20, 21 plants have been categorised under criticality, of which 11 are domestic coal-based. Of those 11, only 7 source their coal from CIL. The company said that a compression of stock levels at coal-fired plants during peak summer is a recurring seasonal pattern rather than a sign of supply disruption.
CIL added that it has been in active correspondence with power plants, urging them to build up inventories ahead of peak demand periods, particularly those located at logistically difficult points, at times when coal is in ample supply.
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Beyond the 168 MT already in the system, CIL flagged an additional cushion: approximately 50 MT of in-situ mine coal is available for quicker extraction and despatch should demand require it. The company said this reserve could be mobilised rapidly, providing a further buffer against any sudden acceleration in consumption.
CIL said it has adequate supply to meet the full generation capacity of all domestic coal-based plants.