India expects domestic coal supply of 154.7 million tonnes, 42.5 million tonnes short of the projected requirement of 197.3 million tonnes in the September quarter.

Higher-than-expected power demand for Coal

• Due to higher growth in power demand and lower output from some mines, the country expects local coal supply to fall 15 per cent higher than previously projected in the September quarter.
• Annual power demand is seen growing at the fastest rate in at least 38 years and global coal prices are trading at near-record levels due to a supply crunch resulting from the Russia-Ukraine crisis.
• India has stepped up pressure on utilities to increase imports in recent days
• Most states had yet to award contracts to import coal and that Indian utilities would run out of coal by July if no coal was imported.
• Coal inventories at power plants have declined by about 13 per cent since April, which translates to eight days of coal requirement, the lowest level at this time of the year in at least nine years.
• India now expects the demand for coal from utilities to be 784.6 million tonnes for the year ending March 2023, 3.3 per cent higher than projected earlier.

Coal India did not immediately respond to a request seeking comment. The world's largest miner has not imported coal in the recent years.