India’s state-owned coal enterprises are managing a significant increase in input expenses caused by the conflict in West Asia to maintain stable coal pricing, despite an anticipated surge in demand from the electricity sector this year.

The electricity sector in India has estimated a coal demand of 906 million tonnes (mt) for the current year, reflecting a rise of approximately 10% compared to last year’s usage of 813 mt, as the nation braces for a peak electricity demand reaching 270 GW.

During a briefing on the West Asia situation held on Wednesday, Sanjeev Kumar Kassi, the Joint Secretary at the Ministry of Coal, stated that coal supply remains sufficient throughout the supply chain. Currently, power plants have enough coal reserves to last for about 24 days, which is bolstered by ongoing deliveries.

Furthermore, there is approximately 130 mt of coal stored at mining locations, with additional amounts in transit, ensuring a comfortable overall supply situation. The sector requires around 2.4 mt of coal daily, while the ministry has sanctioned a transportation capacity of up to 2.55 mt per day, aided by the availability of adequate rakes through Indian Railways.