India ramps up coal rail shipments as power plant stocks dwindle

India is increasing coal shipments by rail to power plants after fuel inventories at several generators fell to critically low levels, the coal ministry said on Monday.

The increase in rail shipments comes as the number of power plants holding less than 25% of required coal inventories has risen in recent weeks.

The number of plants with coal stocks below 25% of their required inventory or with critically low stocks to generate power for less than three days has risen sharply to 58 by 5 September from 46 at the end of August.

Of the affected plants, 53 are domestic coal-fired plants, according to data on the website of the Central Electricity Authority, a think tank linked to the federal power ministry.

"The number of critical thermal plants is being closely monitored, with corrective coal supply measures already in place to further ease the position at these plants," the coal ministry said.

A surge in coal dispatches from state-run Coal India, its subsidiaries, and private mines has helped lift supplies, with loading rising every day since 3 September, the government said.

Coal loading to power plants increased to 444 unit trains or rakes on 6 September from 370 on 3 September, according to government data released on Monday.

Heavy rainfall in some of the key coal-rich Indian states, including Odisha, Jharkhand and Chhattisgarh, has hit mining and slowed the transportation of the fuel for power plants.

Coal accounts for about three-quarters of India's electricity generation, making uninterrupted fuel supplies crucial for maintaining grid reliability.

Coal India, the world's largest coal miner, said it continues to hold adequate stock of 76 million tonnes of coal at its pitheads.