Coal supplies to power plants jump 36 percent as stock depletion slows down

Daily coal supplies to the power sector have increased by 36 percent from their September low, according to the Coal Ministry. October supplies are also averaging about 9 percent higher than in the previous month. The rate of stock depletion has slowed down sharply, with the daily drawdown falling from 0.243 million tonnes in September to 0.116 million tonnes in October.

Transport and Supply

Rail loading has averaged over 465 rakes per day in October, with the 470-rake target achieved on three consecutive days. Supplies through other modes, including road transport, have also improved. State-owned Coal India and its subsidiaries offered power plants with existing supply agreements the option to lift additional coal beyond their annual contracted quantities to supplement regular rail supplies. The ministry expects daily rail loading of 465 to 475 rakes to be enough to meet power demand.

Critical Stock Tag

The ministry responded to recent media reports warning of potential power shortages due to low coal inventories at power plants. Officials clarified that the critical stock tag is a norm-based trigger for plants holding less than the prescribed threshold of normative stock. This label serves as an early-warning mechanism designed to flag plants well before any actual fuel shortage or generation loss occurs, and does not mean a plant has run out of coal or faces an immediate risk of shutting down.

Context

Coal inventories at thermal power stations are closely monitored because steady fuel supplies are essential to prevent grid instability and sudden power cuts across the country. Power demand typically fluctuates with seasonal changes, monsoon patterns, and industrial activity, requiring careful management of rail rakes and pithead stocks.