State-run Coal India
has asked its subsidiaries to ramp up coal supplies to
power plants to avoid shortages as the country’s power demand
hits a record high following an intense heatwave, two sources
with direct knowledge of the matter said.
Several regions in the country are facing power cuts, mainly at
night when renewable output is not available, as record-breaking
heat triggered by an El Nino weather pattern strains the grid.
As many as 21 power plants have critically low coal stocks,
only enough to meet less than a week’s demand, according to
latest data from the Central Electricity Authority, the adviser
to the power ministry.
The world’s largest coal miner has directed its subsidiaries
to maximise dispatches using all transport modes including rail
links that move coal directly from mines to power plants, the
sources said.
Coal India said on Tuesday it had urged utilities to build
up stocks in advance of peak demand, particularly those located
in logistically challenging areas.
India’s peak power, a measure of the maximum electricity
requirement, hit a record high of 270.8 gigawatts (GW) last
week.
Despite 228 GW of non-fossil fuel capacity, coal still
accounts for more than 70% of India’s power generation.
Coal India and its eight subsidiaries, which account for
about 80% of the country’s coal output, saw production decline
9.7% to 56.1 million metric tons in April, company data showed.
The miner said it held 168 million tons of coal, including
47.6 million tons at power plants, enough to meet 19 days’
consumption.
Stocks at mines stood at 113.5 million tons as of May 23, up
about 10% from a year earlier, it said.