Govt aiming 150 MT of coal stock for thermal power needs by March-end: Pralhad Joshi

The ministry said that India crossed the 900 MT milestone on March 6, 2024

The Ministry of Coal is aiming to touch 150 million tons (MT) of coal stock for overall thermal power needs by March-end, even as India's total coal production has crossed the 900-MT mark for the first time ever, Union minister for coal, mines, and parliamentary affairs Pralhad Joshi said on March 7.

"Currently, stocks at thermal power plants are at 43 MT, which is also the highest. By March-end, we will take this up to 45 MT. Overall, the government is aiming at 150-MT stock, including at plants, transit and at pithead by March-end," Joshi said in an interaction with reporters on the sidelines of an event in Delhi.

The overall coal stock, across mine pitheads, in transit and at thermal power plants stood at 125.5 MT at the end of the last fiscal.

The government is anticipating a peak power demand of 256.53 GW (256,530 MW) in 2024. Last year (2023), it had projected a peak power demand of 230 GW, but in reality, the demand soared to an unprecedented 240 GW instead. The unusual surge in demand also resulted in an alarming spike in the country's power shortage, recorded at 10.745 GW (10,745 MW) on the same day (September 1).

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Setting the stage for the government's record 1-billion-ton (BT) coal production target by the end of this financial year, the ministry said that India crossed the 900 MT milestone on March 6, 2024. "During the current fiscal year i.e. 2023-24, India has achieved a remarkable feat by surpassing last year's coal production of 893.19 MT, twenty-seven days in advance," it said.

Additionally, there is ample coal stock of around 85 MT available with coal companies, the ministry added. The sufficient coal stock and record-breaking coal production facilitate meeting the escalating electricity demand, especially during peak consumption periods, thereby fostering stability in the energy sector and supporting economic growth.

"India's achievement of surpassing 900 MT in coal production not only bolsters India's energy security but also reduces dependence on coal imports, thereby saving forex substantially," the Coal Ministry said in a statement.

The minister on March 7 also released a strategy paper on "Coal Import Substitution”. The paper focusses on the present energy mix of the country, domestic coal production, trends and projections, import trends (sector-wise), and coal import substitution measures already taken by the government. The paper delves into the intricate issues, offering insights, strategies and imperative actions to reduce import dependency and enhance domestic production of coal.

Joshi also reiterated that by 2025-26, import of thermal coal will completely stop as the government would further ramp up domestic coal supply.

The Ministry of Power on March 4 asked all generating companies to continue blending imported coal in thermal power plants till June 2024 instead of March.