Surging production and supplies by the world s largest miner Coal India have pushed stockpiles at power plants to record highs of over 43 million metric tons, prompting it to sell more to non-power sector users such as sponge iron and aluminium smelters, which have traditionally imported the fuel.
A drop in prices towards the end of 2023 pushed up South African thermal coal shipments to India by 74% to 4.7 million metric tonnes in November-December from a year ago.
Domestic coal production and supply rise, leading to a 40% dip in coal imports for blending at power plants. Despite a 10% increase in thermal generation, the April-Dec period of 2023 saw a decline in coal import for blending. The country s domestic coal-based generation also rose by 7%. The government aims to meet future coal demand for power generation from domestic sources.
Domestic coal-based power generation in India increased by 7.14% to 872 billion units (BU) in the April-December period of the current fiscal year, compared to 813.9 BU in the same period the previous year. The growth in coal-based electricity generation indicates an adequate supply of coal to meet the country s growing energy demand, with coal contributing to over 70% of the total electricity generation.