India plans to boost coal stocks to 38-40 million tonnes at power plants by June 30 ahead of the monsoon, according to the country's coal ministry.
The stocks would be 13-19% higher than the year-ago level, it said.
Significant enhancement in railway infrastructure would help in boosting coal inventory buildup. The commencement of coal transportation from Dhamra and Gangavaram ports a few months ago, along with the resumption of production from Rajmahal mines last year, would also play a role.
India's summer monsoon, commonly referred to as the rainy season, usually starts in late May or early June and continues until September. Coal production and transportation are usually affected during this time due to the unfavorable weather conditions.
Coal consumption may rise to compensate for reduced hydropower generation during periods of below-average rainfall. The previous year saw the driest August in over a century, leading to coal accounting for 66.7% of power output, the highest in six years.
Typically, India experiences its peak electricity demand in May, as people increase air-conditioning usage to combat the heat and industries function without rain-induced interruptions.
To prevent potential power outages resulting from coal supply deficits during peak demand periods, the government has already built coal stocks to a high level.
As of April 23, coal stockpiles at power plants across India reached 48.92 million tonnes, equivalent to 16.8 days of use. The coal stocks were 50.51 million tonnes at the start of this financial year, enough for 17.7 days of consumption.
(Writing by Alex Guo Editing by Harry Huo)
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