Stretched supply chains likely to weigh on coal stocks till Apr-end

The issue of low coal stocks at thermal power plants across a number of states is likely to continue till at least the end of April, said a senior government official.

Low coal inventories at thermal power plants have already led to load shedding in a number of states, including Punjab, Maharashtra, Andhra Pradesh, Madhya Pradesh and Bihar. A senior government official said the requirement for thermal power had hit 3.4 billion units (BU) per day against an estimate of 3.25-3.3 BU per day as a result of unexpectedly high demand for power, and lower supply from gas-based power plants due to a spike in prices. Coal-based thermal power meets about 76 per cent of the country’s power demand.