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May 08, 2023

SectorVector - April rains, buffers bloom

 

Reading the topical trends

Proactive efforts by the central government, and rains in April have ensured coal availability will be adequate to meet the imminent increase in power demand this summer, amid forecasts of heatwaves.

 

Coal production rose 12% on-year to a record high of 107.8 million tonne (MT) in March 2023 and 8.63% on-year in April 2023. 

 

In contrast, output had fallen 0.2% in March last year, and power demand had surged 14.7% in April. Consequently, coal stocks at thermal power plants fell to an average 8 days by the end of April 2022. As many as 96 plants saw their coal buffers declining below the 25% normative requirement. This year, the supply situation has fared much better.

Increase in power demand in May will lead to higher dependency on coal