India amasses record seasonal coal stocks

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By John Kemp

LONDON- India’s coal-fired generators have managed to amass record stocks of fuel for the end of February, even as they produce record amounts of electricity to cover burgeoning demand and a drought that has hit hydropower.

The fuel supply picture has been transformed in less than two years from scarcity to abundance as a result of a huge increase in domestic production and prioritization of coal movements to power stations across the rail network.

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Coal-fired generators produced a record 112 billion kilowatt-hours in January 2024 up from 91 billion kWh in January 2022, Ministry of Power data show.

Even so, power plant inventories have continued to increase as the amount of fuel arriving has outstripped combustion.

Generators had 44 million tons of fuel on hand on February 26 up from 26 million tons at the end of February 2022.

Stocks were enough to meet more than 15 days of the minimum requirement from under 10 days at the same time in 2022.

Generators have been able to accumulate fuel despite running unusually hard in the autumn to compensate for the lack of hydropower after a weak monsoon in 2023.

Fuel security has been boosted by an enormous increase in the volume of coal produced from the country’s own mines.

Domestic production hit a seasonal record 100 million tons in January 2024 up from 80 million tons in January 2022, according to the Ministry of Coal.

Mines dispatched an additional 12 million tons in January 2024 compared with January 2022 and most of the extra was sent to generators (+9 million) rather than other users (+3 million).

Mines loaded an average of 315 unit trains or rakes per day in January 2024 up from 285 per day in January 2022, Ministry of Coal data show.

Nearly all the extra unit trains were dispatched to generators rather than other users under government orders to prioritize electricity supplies.

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