Coal crisis abates, but stocks may not return to normalcy soon

A moderate improvement in the coal supply from multiple sources, coupled with lower power demand due to decreasing temperatures, has helped in avoiding a serious electricity supply shortage situation. However, analysts feel that higher-than-average power demand and over-dependence on coal-based power plants will make it difficult for electricity generating stations to maintain comfortable levels of fuel inventory in the near future.

“Coal stocks are unlikely to improve to the previous level of 15-18 days inventory anytime soon,” the latest report by CRISIL Research said.