Coal India steps up coal dispatches as heatwave drives record power demand in India
India's power system is under growing strain as an intense heatwave lifts electricity use to a record and exposes pressure points in nighttime supply. Coal India is asking its subsidiaries and utilities to raise coal movements and stock levels to help prevent shortages at power plants.
Highlights
- Coal India instructs its subsidiaries to maximize coal dispatches using all transport modes as power plants face critically low coal stocks amid a heatwave-driven demand surge.
- India's peak power demand hits a record 270.8 gigawatts as coal continues to supply over 70% of generation despite 228 GW of non-fossil fuel capacity.
- Coal India reports April production fell 9.7% to 56.1 million metric tons, but total coal stocks rise to 168 million tons, up 10% year-on-year at mines as of May 23.
Coal dispatch push amid supply strain
As reported by Reuters, Coal India has asked its subsidiaries to maximize coal dispatches to power plants using all available transport modes, including rail links that move fuel directly from mines to generators. The state-run miner also says it has urged utilities to build up inventories ahead of peak demand, especially in logistically difficult areas.Several parts of India are facing power cuts, mainly at night when renewable generation is unavailable, as extreme heat linked to an El Nino weather pattern puts additional stress on the grid. According to the latest data from the Central Electricity Authority, 21 power plants have critically low coal stocks, enough for less than a week's demand.
Power and coal sector implications
India's peak power demand, a measure of maximum electricity requirement, reaches a record 270.8 gigawatts last week. Despite 228 GW of non-fossil fuel capacity, coal still accounts for more than 70% of the country's power generation, underscoring the fuel's central role during periods of heavy consumption.Coal India and its eight subsidiaries, which account for about 80% of the country's coal output, record a 9.7% decline in production to 56.1 million metric tons in April, company data show. The miner says it holds 168 million tons of coal, including 47.6 million tons at power plants, enough for 19 days of consumption, while stocks at mines stand at 113.5 million tons as of May 23, up about 10% from a year earlier.
Our earlier report on the U.S.-India critical minerals framework outlined how the two countries are seeking to strengthen end-to-end supply chain resilience for critical minerals and rare earths, from mining and processing to recycling and investment. The agreement was positioned as a way to reduce dependence on concentrated supply sources and support long-term access to inputs that underpin advanced manufacturing and clean-tech growth.
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