India says it is ready for unprecedented coal power demand in summer

NEW DELHI: India has sufficient coal supplies to meet what is expected to be an unprecedented surge in demand during the summer months, the Coal Ministry said on Wednesday, after gas supply disruptions due to the U.S.-Israeli war on Iran.

The overall coal stock available in the country is about 210 million metric tons, which would be sufficient for about 88 days of consumption, the ministry said in a statement.

The South Asian country still relies on coal for three-fourths of its electricity generation, even as it ramps up renewable energy generation at a record pace.

The statement comes as India expects to boost its coal power usage to meet the summer demand after the conflict in the Middle East hit its supplies of natural gas, mainly from Qatar.

READ MORE: India’s small steelmakers face production cuts amid LNG shortages due to Iran war

The country’s power plants had 54.05 million tons of coal, enough for about 24 days at the current rate of consumption, the ministry said. Pithead stock at Coal India, which produces three-quarters of India’s output, was around a record 121.4 million tons as of March 9.

“Coal production and supply continue to be higher than consumption in fiscal year ending March 31,” the statement said.

Higher domestic production has also led India to open up exports for neighboring countries and test increased blending of domestic coal in power plants traditionally designed to be operated with imported coal.