India Sets 55 Million Tonne Coal Stock Target for Power Plants Ahead of Summer 2027!

The government has asked coal producers and Indian Railways to increase coal supplies to power stations, with a target of at least 55 million tonnes in stock by March 2027, according to news reports.  

Inventories currently stand at around 18 million tonnes. The target has been set jointly by the coal, power and railways ministries. The proposed stockpile would be close to the level recorded during the same period this year.  

The government generally expects power plants to maintain around 21 days of coal supplies, although requirements differ across locations. 

Coal Reserves Remain Near Five-Year Low 

Coal shortages over recent months have contributed to power cuts and higher energy costs. Although stocks have recovered over the past two weeks as temperatures have fallen, power stations still hold supplies for around six days of consumption. 

Nearly half of the country's power plants have critical stock levels, meaning their inventories are below 25% of the required quantity. Lower hydropower generation and higher electricity demand during hot weather have added to the pressure on electricity supplies. 

Cyclone Arnab last month also disrupted the supply system. The government is looking to avoid power shortages ahead of assembly elections in several states, including Uttar Pradesh, in the first half of 2027. 

Coal India and Railways Increase Supplies 

Coal India Ltd reported its highest-ever production for October. Its shipments also reached a record during the month, surpassing the previous high recorded in March. More than 80% of the coal dispatched went to power stations supplying electricity to the grid. 

Indian Railways provided 20% more carriages in October compared with the previous year. The power ministry wants railway capacity to increase by another 7% by March 2027. 

Industrial Units Face Coal Shortages 

The increased allocation to power stations has affected other coal users. According to Rajiv Agarwal, secretary general of the Indian Captive Power Producers Association, businesses operating captive power plants have waited months for contracted supplies. Some have turned to higher-priced spot auctions or purchased electricity from the grid. 

Newsprint manufacturers have also reported limited improvement in coal availability. Vijay Kumar, secretary general of the Indian Newsprint Manufacturers Association, wrote to Prime Minister Narendra Modi last month seeking intervention and a reduction in coal allocation to power plants. 

Read More: Central Government Proposes New Import Locations in 5 States for Drugs, Medical Devices and Cosmetics! 

Conclusion 

The government is targeting 55 million tonnes of coal stocks by March 2027. However, power stations receiving priority in allocation has left industrial users facing supply delays and higher procurement costs. 

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