Coal demand outstripping domestic supply in India

Producers are only meeting 60% to 65% of annual demand.

Coal demand continued to outstrip domestic supply in India for the month of September, as power demand increased further in the country.

Care Ratings, in its report, said power consumption for the period August 2021 and September 2021 increased from 106.6 BU per month in 2019 (pre-COVID year) to 124.2 BU per month in 2021. 

Meanwhile, coal production in the country's biggest companies, Coal India Ltd. (CIL) and  Singareni Collieries Company Limited (SCCL),  both decline in September, at around 4% and 10%, respectively. 

The analysts said the decline in coal production was due to sharp increase in international coal prices and freight rates, and the emergence of of the monsoon season.

"Since domestic coal producers meet just about 60% to 65% of the country’s total annual coal demand, this has led to a high import dependence and the demand far outstripping the domestic supply," Care Ratings said.
Coal production, however, will likely pickup after the monsoon season recedes.

 In other Asian countries, coal stockpiles are also hitting low levels.

In China, production has hit "critical low levels," while demand is "at all-time high."

Globally, domestic demand for coal from power sector picked up from August 2021 onwards as pandemic restrictions eased further in many countries.

To meet the the annual target fro coal production, domestic coal producers including CIL and SCCL
"will have to significantly ramp up the production from October 2021."

Join Asian Power community
Since you're here...

...there are many ways you can work with us to advertise your company and connect to your customers. Our team can help you dight and create an advertising campaign, in print and digital, on this website and in print magazine.

We can also organize a real life or digital event for you and find thought leader speakers as well as industry leaders, who could be your potential partners, to join the event. We also run some awards programmes which give you an opportunity to be recognized for your achievements during the year and you can join this as a participant or a sponsor.

Let us help you drive your business forward with a good partnership!

An average of RMB5t a year is needed to decarbonise its economy.
It is expected to be higher than the overall level in Southeast Asia in 2030.
The only green parameter for credit rating is the RPO which carries “the least weight,” IEEFA says.
This will take effect on 11 November 2021.
Hai Long 2 and Hai Long 3 substations have a total capacity of over one gigawatt.
The MOU is effective for two years but it can be extended by the parties. 
Some 3 Mt of Australian thermal coal are awaiting clearance at Chinese ports.
This is whilst also ensuring the country’s resilience from climate risks. 
Producers are only meeting 60% to 65% of annual demand.
Financing needs to be scaled to drive India's rooftop solar potential, IEEFA argues.
This comes as the gov't issued the new draft of the Sixth Strategic Energy Plan.
Vietnam should craft incentives to carry out cost-competitive renewables, argues IEEFA.
It will likely grow, but not as rapidly as solar power.
This move is in line with China's carbon neutrality target before 2060.
Implementation challenges could lead to a loss of credibility for the bank.