Whalesbook
Coal Consumption Forecast Lowered
India's thermal power plants, with a capacity exceeding 221 gigawatts, are now expected to consume less than 850 million tonnes of coal in the financial year ending March 2027. This figure falls short of the 906 million tonnes targeted by the Power Ministry. The revised forecast accounts for the increasing contribution from renewable energy sources and lower expected power demand, even with projections for higher summer temperatures.
Ample Coal Stocks Ensure Supply
Amid global uncertainties, the coal sector remains prepared to meet consumer needs. Sanjeev Kumar Kassi, Joint Secretary in the Coal Ministry, stated that ample coal reserves are available. As of April 6, power plants held 55.18 million tonnes, providing approximately 24 days of cover. An additional 171.90 million tonnes are in transit or stocked at mines, including those operated by Coal India Limited (CIL) and Singareni Collieries Company (SCCL).
Affordability and Availability Measures
Coal India and SCCL have absorbed increased input costs without passing them onto consumers. To enhance affordability and availability, CIL reduced its reserve price for coal by 20% in e-auctions and increased supply through this channel and state-nominated agency channels. These efforts aim to ensure steady supply for all consumers and meet immediate needs, with CIL conducting numerous e-auctions throughout March and April 2026 to ensure adequate offering.