Coal PSUs absorb costs amid India’s supply push to meet power demand

India’s public sector coal companies are absorbing a sharp rise in input costs triggered by the West Asia conflict to keep coal prices stable, even as demand from the power sector is set to rise sharply this year.

India’s power sector has projected a coal requirement of 906 million tonnes (mt) for the current year, around 10% jump from last year’s consumption of 813 MT, as the country prepares for a peak electricity demand of 270 GW.

At an inter-ministerial briefing on the West Asia crisis on Wednesday, Sanjeev Kumar Kassi, Joint Secretary at the Ministry of Coal, said coal availability remains adequate across the supply chain. Power plants currently hold stocks sufficient for about 24 days of consumption, supplemented by continuous supply.