India’s thermal power plants have achieved a record coal stock of 58.25 million tonnes, which is sufficient to sustain 25 days of consumption. This significant milestone was announced by the government on Tuesday and is seen as a crucial boost to energy security as the country approaches the monsoon season. The timing of this stockpile is particularly important since the monsoon often leads to disruptions in coal mining and transportation activities.
Maintaining a robust reserve of coal will help mitigate potential energy shortages during this period. India stands as the second-largest coal consumer in the world and has taken considerable steps to increase domestic coal production. This surge in production aims to meet the growing demand for electricity while decreasing the nation’s dependence on coal imports.
Notably, the government plans to enhance coal-fired capacity by 80 GW by the year 2031-32, even as it strives to achieve a target of 500 GW of non-fossil fuel energy capacity by 2030. In terms of numbers, thermal coal imports for the fiscal year 2024-25 decreased by 8% year-on-year, totaling approximately 169 million tonnes. This reduction can be attributed to the rise in domestic production and a decrease in the blending of imported coal, as reported by commodities consultancy BigMint.
Furthermore, data from Grid India indicates a decline in coal’s share within the power mix, dropping to 70.7% in May from 74.0% a year earlier—the lowest level seen since June 2022.