Nearly 40 per cent of India's coal-fired power plants are operating with critically low fuel stocks as electricity demand remains elevated amid hotter-than-usual weather, government data showed.
The number of plants holding less than 25 per cent of their required coal inventory, or enough fuel to generate electricity for fewer than three days, rose to 74 as of September 19 from around 60 a week earlier, according to Central Electricity Authority data cited by Reuters.
India's peak electricity demand has remained between roughly 230 GW and 250 GW over the past week after touching an all-time high of 270.70 GW in May.
The decline in inventories appears to reflect temporary logistical constraints rather than a broader shortage of domestic coal supply, analysts cited in the report said. Coal and railway ministries had earlier indicated that supplies to power plants were being increased after erratic monsoon rains disrupted shipments.
Renewable power generation rose about 21 per cent between April and August. However, the intermittent nature of renewable generation means coal-fired plants continue to play a significant role in meeting round-the-clock electricity demand.
Coal imports by Indian power producers also rose to a 15-month high in August as stronger electricity consumption and lower hydropower generation increased demand for thermal generation.