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Why availability of coal at plants has been hit, IIFL explains

Coal India (CIL) reported 7% growth in coal supply to the power sector during FY18 yet, coal stocks at operational thermal power plants have remained low at only 10 days of requirement. Importantly, the number of plants with critical-level coal stock has zoomed to 28 as of Mar-2018, with distant plants in western and northern India witnessing greater shortage. This is driven by logistics constraints and not by lower production at CIL. Shift to roads and MGR for near pithead plants (to make rail capacity available for distant plants) along with ongoing investments in rail projects would help. But shortage at power plants may continue in the interim, especially if demand growth sustains. Also CIL’s offtake growth can remain healthy subject to.....

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