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Coal stockpiles at Indian power plants are very low

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World Coal,

Coal stockpiles at Indian power plants have reached their lowest levels since February 2013, according to Commodore Research’s Weekly Dry Bulk Report. Power plants now have only about 12.9 million t available, 7.4 million t less than was stockpiled last year.

“Low power plant coal stockpiles are becoming a big issue,” said Commodore Research in an article for Hellenic Shipping News Worldwide. “Local officials in India are stating that a greater number of power shortages are expected to occur in the new team.”

Coal shortages have plagued the Indian power industry for some years and contributed the recent slowdown in the Indian economy. It is one of the key challenges facing the new government of Narendra Modi, who has combined the coal and power ministries under one “super-minister” in an attempt to help solve the issue.

Electricity demand has hit multi-year highs in many states over the last two months as temperatures soared, while a drier rainy season has limited hydropower production. Both factors have contributed to a rise in India’s thermal coal imports. In May, these rose to 15.6 million t, according to figures from OreTeam – the highest levels for that month in three years.

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