Govt steps, April rains ensure adequate coal to meet summer power demand: Crisil
1 min read 08 May 2023, 03:01 PM ISTCoal production increased 12% YoY to a record 107.8 million tonne in March 2023 and 8.63% YoY in April 2023.
PremiumNew Delhi: The Indian government’s proactive measures and abundant April rainfall have ensured sufficient coal availability to accommodate the expected surge in power demand this summer, as heatwave predictions loom, according to a report by Crisil Ratings.
The report said coal production increased 12% YoY to a record 107.8 million tonne in March 2023 and 8.63% YoY in April 2023. In contrast, output had declined 0.2% in March of the previous year, while power demand had risen 14.7% in April.
As a result, coal stocks at thermal power plants had dropped to an average of 8 days by the end of April 2022. This year, however, the supply situation has significantly improved. The report also noted that overall coal dispatches to end-users grew 11.6% YoY to 80.35 million tons in April 2023, with dispatches to power plants increasing 6.6% YoY to 65.41 million tons during the same period.
The rise in domestic supply, coupled with the mandate to blend 6% of the requirement with imported coal in the first half of fiscal 2024, has created adequate buffers at thermal power plants this year. Despite a 19% YoY decline in hydro generation in April 2023, nuclear and solar generation expanded by 11% and 15%, respectively. These sources now account for 9% of total generation, a higher share than last summer, when their contribution had dipped to 8%.
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