India tells utilities to expect less domestic coal in June

India has slashed the number of coal-fired national power plants it can expect to receive in June by 11.1% and has asked some utilities to import more to increase stockpiles in the face of rising demand for coal, electricity, according to an internal memo from the federal electricity ministry seen by Reuters.

India has scrapped a policy to cut coal imports to zero, implemented an emergency law to run public services based on imported coal and plans to reopen closed mines to meet growing coal demand. at least 38 years.

The minister reduced the total domestic coal supply target for June to 56.2 million tonnes from the previous 63.3 million tonnes, adding that he would proportionately allocate domestic coal to power generation companies subject to availability from June 1.

“The balance requirement must be met by imported coal and a realistic assessment of production from captive coal mines,” he said in a May 24 memo.

June import requirements for the mixture increased 16.2% to 4.89 million tonnes, according to the memo.

The energy minister said falling imports put pressure on domestic coal supplies and led to a depletion of fuel stocks at power plants.

Coal inventories at power stations have fallen by a sixth since April 1, earlier this fiscal year. Indian utilities started the year with fuel stocks that will last for nine days, the lowest stocks in at least nine years.

India last week warned state-run utilities about cutting domestic coal supplies if they did not import coal for blending by June 15.

Miners will increase local supplies to utilities that import more and help build stocks if additional coal becomes available, the minister said in this obligation.

State-owned mining companies Coal India and Singreni Collieries will now target a supply of 47.45 million tonnes in June, 9.3% below their previous target of 52.3 million tonnes.

The supply target for captive mines, where end use of mine production is limited, has been reduced to 8.78 million tonnes, more than 20% below the previous target of 11 million tonnes, the Energy Minister said.

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