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Coal stocks at pithead and thermal plants in excess due to lockdown situation

Power demand across country has fallen by 30% de to lockdown situation across country, this has forced 65 GW of coal based plants to backdown or run at reduced PLF. Coal requirements have fallen low to drastic level due to fall in demand from commercial and industrial consumers. Even coal stocks at pithead have risen to high levels, Gencos are not ready to accept any more coal supplies and are not filing their rake requirements with railways, leading to non-allotment and no supplies, as they already stockpiled enough coal. Generators in states like Haryana, Punjab, Uttar Pradesh and Rajasthan have refused to lift coal from coal mines

Falling demand could raise inventory cost across most of the thermal power plants in country. Also Gencos may face some penal actions for not procuring less than 75%-90% of the year’s quota.